# Observe the market supply schedule of potatoes and answer the following question: Draw the market supply curve from the schedule and explain it. - Economics

Diagram

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

Draw the market supply curve from the schedule and explain it.

#### Solution

 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

• In the diagram, the quantity supplied is shown on the X-axis and the price on Y-axis.
• Supply curve SS slopes upward from left to right indicating a direct relationship between price and market supply.
• 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.
• This shows that agricultural goods are an exception to the law of supply. Their supply is inelastic in the short term.
Concept: Supply Analysis
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#### APPEARS IN

Balbharati Economics 12th Standard HSC Maharashtra State Board
Chapter 4 Supply Analysis
Exercise | Q 5. (B)(1) | Page 45