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Because there is, and the common belief there isn't one is a fallacy. The Law of Supply (from where we get the supply curve) says supply increases as prices increase. A monopoly sees the same effect--if the price goes up, supposedly the supply will go up because the producer will be encouraged to make more of the item, which will make him more money. The Law of Demand says demand increases as prices decrease. Where the two lines cross is the "equilibrium price." Equilibrium is good--you're selling all you make, and no one is unhappy because they can't get what you sell. The reason there are supply and demand curves in a monopoly is there is almost no such thing as an irreplaceable item, with the exception of Rolls-Royces, fancy wine and other limited-production luxury items. You can always substitute something for the monopoly good if the monopoly supplier gets stupid about their pricing. There's only one airline? Cars still work. Only one brand of toothpaste? Use baking soda.
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What is difference between individual supply curve and market supply curve?
The difference between individual supply curve and the market supply curve is tat individual supply curve is like a firm. To be able to get the market supply curve you have to have the individual supply curve.
How is a market supply curve similar to and different from an individual supply curve?
how is a market supply curve similar to and diffrent from an individual supply curve
How do a supply curve and a market supply curve differ?
A supply curve is a graph showing each and every price in that market, where as a Market supply curve shows the prices by all firms that offer the product for sale in a given market.
A Is the market supply curve for a product more or less price elastic than the supply curve of one of the firms in the market Why?
The market supply curve of a product is more price elastic than the supply curve of one of the firms in the market. The reason is that for any given price change, the market quantity response reflects the change in output of all the firms in the market.
What do the points on a market supply curve represent?
Each point on a market supply curve denotes basically the same thing. Each point on the curve corresponds to the supply of something, but at a specific or given price.
What is difference between individual supply curve and market supply curve?
The difference between individual supply curve and the market supply curve is tat individual supply curve is like a firm. To be able to get the market supply curve you have to have the individual supply curve.
How is a market supply curve similar to and different from an individual supply curve?
how is a market supply curve similar to and diffrent from an individual supply curve
How do a supply curve and a market supply curve differ?
A supply curve is a graph showing each and every price in that market, where as a Market supply curve shows the prices by all firms that offer the product for sale in a given market.
A Is the market supply curve for a product more or less price elastic than the supply curve of one of the firms in the market Why?
The market supply curve of a product is more price elastic than the supply curve of one of the firms in the market. The reason is that for any given price change, the market quantity response reflects the change in output of all the firms in the market.
How is the market supply curve derived from the supply curve of individual producers?
By simply adding them together.
What do the points on a market supply curve represent?
Each point on a market supply curve denotes basically the same thing. Each point on the curve corresponds to the supply of something, but at a specific or given price.
How is a market supply curve similar to an individual supply curve?
The individual supply curve is the supply curve of a single firm producing output. Now say there are X individual producers there at any price P* the total available output is the output of all X producers ( a horizontal summation) this total of each individual supply curve gives the market supply curve. Put it simply all firms sell their output in the market.
Why demand always downward slop in competitive market?
The reason why demand curve is always downward slopin a competitive market is because there are many sellers and buyers in the market.so the price of a commodity in such market determines the demand and supply of that product.unlike a monopolistic market were there is just öne seller and many buyers
What is the shape of supply curve during the market period?
The supply curve during the market period is perfectly inelastic and vertical. This shows that the supply cannot be increased in the short run.
Are the number of suppliers held constant along the market supply curve?
No, the market supply curve states that amount of goods that will be supplied within an economy at a given price.
In a competitive market the equilibrium price and quantity occur where?
When demand curve intersects the supply curve.
Explain how labor market equilibrium is affected by the supply and demand of labor in a Monopolistic Competition?
The labor market will reach equilibrium as the amount of workers willing to work for a certain price equals the amount of workers employers are willing to hire for that wage. On a supply and demand curve the employees represent the suppl side while the employers represent the demand side
