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1.) Explain the law of supply. Why does the supply curve slope upward? How is the market supply curve derived from the supply curves of individual producers?
Ans- The law of supply states that cetris paribus, an increase in the price of a commodity will lead to an increase in the supply of that commodity and vice versa.In other words, we can say that price of a good and its supply are positively related.As a result, the supply curve is upward sloping with price on the vertical axis and supply on the horizontal axis. The…

market supply curve is derived from individual supply curves by horizontal addition of all the supply curves,what this means is that for a given prices, the supply of all goods are added horizontally in order to derive at the market supply curve.



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