like we did for demand we're going to go from individual supply to market supply let's start simple we've got antonio's pizza's supply schedule and we'll add in two other pizza places blancas and carmen's blanca's is a smaller shop than antonio's so at every price her place is willing to sell somewhat less than antonio's is carmen's on the other hand is big and can staff up easily so at every price it's willing to sell a lot then all we have to do is add up the total amount produced by all three of them at each price and we've got the market supply schedule so that's 350 1000 2000 three thousand so let's graph that over here quantity on the x-axis price on the y-axis one two three four then over here three thousand two thousand one thousand so at one dollar it's 350. at two dollars it's a thousand at three dollars it's two thousand and at four dollars it's three thousand and then we can connect these this is the market supply curve if these were the only three pizza places around but of course these aren't the only three pizza places so let's come up with a market supply curve for pizza we'll make it easy again and go with a straight line q equals 100 p what does this mean when we set the price equal to zero the quantity supplied is zero when the price is one we have that q equals one hundred times one or one hundred million slices per week when q when p is 2 it's 200 million slices per week and so on we can put this on a supply curve go 100 200 300 400 and we can see the supply curve will look like this and it'll keep going out this is a market supply curve it's a willingness to sell curve and under the assumption that we made in the last video about price takers it is also a marginal cost curve at each quantity it tells us the least that producers are willing to accept for their pizza alternatively at every price it tells us the most quantity that producers are willing to make and it gives us more valuable information at a price of four we know that there are 400 million slices supplied but there are some pizza places that we're willing to sell for less than that and some places that we're willing to sell at barely willing to sell at four dollars a slice if the price goes up to five dollars pizza pizza shops will be willing to sell more the difference between the least that a producer is willing to accept for a particular quantity and the market price is called producer surplus suppose that your pizza shop was willing to sell at three dollars a slice but the price was five dollars that two dollar benefit from the sale is producer surplus and as before we'll come to this concept again when we talk about markets in more depth