Same with how we derive the market demand
we can add up all the individual supply curves
and get the market supply
Suppose in our market
there are only 2 producers—John and Tom
These are their supply schedules for cakes
Add up the cakes at every price
And this is our market supply schedule
How do these tables look like in graphs
Let’s graph John’s supply curve first
At $2, John supplies 10 cakes
At $4, 20 cakes
At $6, 30 cakes
Well, John’s supply curve
And this is Tom’s supply curve
Let’s do a horizontal summation
At $2, the total cakes supplied is 10 + 20 = 30
At $4, it’s 20 + 30 = 50 cakes
At $6, it’s 30 + 40 = 70 cakes
So there you go
The market supply curve
Since the market supply
is made up of individual supply curves
When individual supply curve shifts
the market supply curve shifts
Suppose technology improves
Both John and Tom increase their supply of cakes
their supply curves shift right
The market supply curve shifts right too
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