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	135
4	44	50	____	154

1. Complete the quantity of potato 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	40	55	135
   4	44	50	60	154

   Calculations:

   1. At ₹ 1: Firm A = 100 − (20 + 45) = 35 kg
   2. At ₹ 2: Market Supply = 37 + 30 + 45 = 112 kg
   3. At ₹ 3: Firm B = 135 − (40 + 55) = 40 kg
   4. At ₹ 4: Firm C = 154 − (44 + 50) = 60 kg
2. To draw the market supply curve, plot the following points:
   

   Market supply (kg)	Price (₹)
   100	1
   112	2
   135	3
   154	4

   Join the points with a smooth upward-sloping line:
   
   Explanation:
   The market supply curve slopes upward from left to right. It shows a direct relationship between price and quantity supplied. As the price of potatoes increases, producers are willing to supply a greater quantity to the market.