A. What is the primary incentive of each producer to make widgets? b. What would happen to the supply of widgets if there was a technological advance that lowered the cost to
make widgets? Explain.

c. Make a supply schedule for the whole market of widgets, based on these three suppliers.

d. Draw the market supply curve from the schedule in part (c). Label the curve S1.

e. On your graph from part (d), illustrate the effect of the technology advance on the supply of widgets.
Label the new curve Sz.

f. Assuming the market situation from part (b), and that producers will not charge less than $1, would the
quantity supplied of widgets be more or less than 11 widgets? Explain.