In Figure 3-7, what are the effects of a price increase from $2 per wireless earbud to $4 per wireless earbud on the quantities supplied by supplier 1 and by supplier 2 individually and combined?

Figure 3-7

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FIGURE 3-7 Horizontal Summation of Supply Curves In panel (a), we show the data for two individual suppliers of wireless earbuds. Adding how much each is willing to supply at different prices, we come up with the combined quantities supplied in column 4. When (1) Price per Wireless Earbud $5 4 3 2 1 we plot the values in columns 2 and 3 on grids from panels (b) and (c) and add them horizontally, we obtain the combined supply curve for the two suppliers in question, shown in panel (d). 55 40 35 25 20 Panel (a) (2) (3) Supplier 2's Quantity Supplied Quantity Supplied Supplier 1's (thousands) (thousands) 35 30 20 15 10 (4) = (2) + (3) Combined Quantity Supplied per Year (thousands) 90 70 55 40 30