Question

Observe the market supply schedule of potatoes and answer the following question:

Price in ₹	Firms			Market supply (kg)
	A	B	C
1	____	20	45	100
2	37	30	45	_____
3	40	____	55	155
4	44	50	_____	154

1. Complete the quantity of potatoes supplied by the firms to the market in the above table.
2. Draw the market supply curve from the schedule and explain it.

Answer 1

1. 
   

   Price in ₹	Firms			Market supply (kg)
   	A	B	C
   1	35	20	45	100
   2	37	30	45	112
   3	40	60	55	155
   4	44	50	60	154

2. 
   
   In the diagram, the quantity supplied is shown on the X-axis and the price on the Y-axis.
   A. Supply curve SS slopes upward from left to right indicating a direct relationship between price and market supply.
   B. It is pertinent to note that when the price rises from price 3 to price 4, the supply more or less remains the same at 155 quantity supply.
   C. This shows that agricultural goods are an exception to the law of supply. Their supply is inelastic in the short term.