Explain how the market supply curve is derived. Does the law of ...

[asan beg]

Explain how the market supply curve is derived. Does the law of supply apply to the market supply curve?
 
  What will be an ideal response?

Question 2

Using Scenario 1 what would happen to your budget constraint if suddenly you discovered an extra 10 hours in your schedule that you could use to study.
 
  What would happen to the slope of the budget constraint? What would happen to the positioning of the budget constraint?

[akudia]

Answer to Question 1

The market supply curve for a good can be found by summing the quantities supplied by all of the firms selling in the market for that good. Since all firms' supply curves are upward sloping (due to the law of supply), the market supply curve will also be upward sloping. Therefore, the law of supply does apply to the market supply curve as well.

Answer to Question 2

The slope of the budget constraint would remain unchanged. However the budget constraint would shift outward and to the right.

[asan beg]

Thank you

[akudia]

No problemo