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Supply and Demand

Individual Supply and Market Supply


Individual Supply and Market Supply

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So now let's see the relationship between the individual suppliers supply curve and the market supply curve. So just like with demand, we've got individual supply curves for every single supplier. Um And when we want to find out the market supply, what we're gonna do is some all the individual supply curves. So we've got a pretty simple market here, we've got two suppliers, papa yams and domino peacemaking, Supreme Pizzas. So at different um levels of price, we are going to see different levels of quantity supplied from each supplier. And if we wanted to find out what the market supply is going to be, all we have to do is some all the suppliers individual supply curves, right in this case we only have two. So it should be pretty easy, let's start with a price of $2. So papa yams is gonna supply to see cream pizzas at that price and domino piece is not gonna get involved in the market. So we're gonna have a market supply of two at a price of $2. And how about at a price of $4 We're gonna see market supply coming up to six. Let's keep going here at a price of $6 papa. Makes eight pizzas, domino's makes two, and we're gonna get 10 pizzas. And notice we're seeing the supply is increasing as the price increases and that goes hand in hand with our law of supply, right? So 11 plus three. We've got 14 at a price of eight and at a price of 10, the market will supply 18 pizzas, right? So let's go ahead and let's grab the individual supply curves and the market supply curve. So let's start here with papa yams which is gonna be this second column here um and we're gonna take the prices and the quantity supplied for papa yams. So just like before right we've got our price access, there are quantity access down here and let's go ahead and graph these points. So at a price of $2 he papa john's will supply two pizzas right here at a price of $4. They will supply five pizzas in the middle of four and six at a price of six. They will supply eight pizzas price of 8. 11 pizzas and at a price of 10. 14 pizzas. Alright, I just realized I have this cool little tool over here. It should hopefully make my line making a little better look at that. Too bad. You guys can't do the same thing. Right well there is my supply curve. Um you know what I want to make it red. So in the end I'm just gonna drop myself, Oh well let's see what I get here close enough there is papa yams supply curve. Right, I'm gonna write that in here, papa yams supply. That's going to be this red line right here and that shows us that all the different prices. How many pizzas papa yams is willing to supply to the market, let's do the same thing with domino hopes. So at a price of $2 they want, let's label our axis, right P. And Q. At a price of $2, they are not going to supply any. So we are actually going to see a price of two and a quantity of zero right there. Let me get out of the way. Okay and at a price of four, they are going to supply one at a price of six will supply to price of eight will supply three. And at a price of 10 dominoes will supply four pizzas. So there we go. Let's go ahead and connect our dots here and get whoops look at me. All right, let's get this line very steep line. There is our supply curve for domino's cool. So that whole line is the supply curve and let's go ahead and make our market demand. So just like excuse me, our market supply. So right here we're gonna add the papa yam supply to the domino supply and that's gonna give us this column here on the right, right, those were our total market supplies um at the different prices. So let's go ahead and scroll down to our market supply graph. And let's go ahead and get those in there. All right. So we had at a price of two we're gonna supply to and there's space for me here. So I'm gonna come in. Alright, so let's go ahead and graph that. So the market supply at a price of two, price being our Y axis here, quantity being on our X axis. So at a price of two we are going to supply to write a price of four. We're going to supply six a price of six. We will supply 10 or the whole market not we Right at a price of eight, we're gonna supply 14. And at a price of 10, the market is going to supply 18 Supreme Pizzas. So let's go ahead. Make our supply curve here and that is our market supply. So notice what we did was some all the individual supply curves and we came up with our market supply. So now we will know how much is gonna be available at different prices in the whole market. Cool. So when you're asked to find the market supply, you just have to sum the individual supply curves. All right, let's move on.