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1)The short-run market supply curve is: a) the horizontal summation of each firm's short-run supply curve

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1)The short-run market supply curve is:

a) the horizontal summation of each firm's short-run supply curve.

b) the vertical summation of each firm's short-run supply curve.

c) the horizontal summation of each firm's short-run average cost curve.

d) the vertical summation of each firm's short-run average cost curve.

2)What would happen to the IS curve if the marginal propensity to consume decreases? Explain.

3)Indicate the effect of the increase in demand and decrease in supply on the equilibrium quantity. Does it increase, decrease or indeterminate?