Question

One point on a market supply curve represents $4 and 100 units quantity supplied. If there are three suppliers, and at a price of $4 one of the suppliers supplies 23 units, then which of the following combinations of price and quantity supplied might hold for the other two suppliers?

a. at $4, quantity supplied could be 40 units for one supplier and 27 for the other
b. at $4, quantity supplied could be 33 units for one supplier and 27 for the other
c. at $4, quantity supplied could be 40 units for one supplier and 37 for the other
d. at $4, quantity supplied could be 77 units for one supplier and 10 for the other
e. there is not enough information to answer this question.

Answer 1

Answer:

Option "C" is the correct answer to the following question:

Explanation:

Given:

Total market supply = $4 and 100 quantity  

Number of suppliers = 3

1st supplier supplies = $4 and 23 units  

Computation of total remain units:

Total remain units = 100 units - 1st supplier units

Total remain units = 100 units - 23 units

Total remain units = 77 units

So,

Only option "C" satisfies the total supply of remain 77 units with two suppliers.

40 units + 37 units

77 units