Economics · May / June 2020 · Paper 12 · Question 6
2281Supply
The diagrams show the supply curve for an individual grower of tomatoes and for the total market supply of tomatoes. What explains the similarity of the two curves?
- AAs costs rise growers need to get a higher price to increase output.
- BAt the lower prices each grower supplies more tomatoes.
- CThe profitability per unit is the same for all growers irrespective of output.
- DSupply is not always influenced by price.
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Correct answer: A. As costs rise growers need to get a higher price to increase output.
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