Understanding Supply Activity: Insights on Costs and Trends

Surname 1 Student’s Name Professor’s Name Course/Subject Date Supply Activity The Supply of Kookies Question 1 I wouldn’t supply any cookies at 20 cents each because such a move would translate to losses. Secondly, there is a higher possibility of digging deeper into my pocket to pay my employees more. Question 2 I have to put in extra effort to make more profit. Such a move is spearheaded by the need to pay employees extra for working overtime. Question 3 Question 4 The law of supply is demonstrated in the curve due to the trend. For instance, there is a

Surname 2 correlation between cookies and price. The more the number of cookies purchased, the higher the price. The purchase of cookies is directly proportional to price. Arnold's fossil farm Question 1 It took him more time because he had to repeatedly climb higher up the hill each time. Question 2 His added costs increased the longer it took him to find fossils. For instance, time is directly proportional to costs (Dancun 11). The more the time taken, the more the costs incurred. Question 3 Arnold should consider allocating 90 hours to look for fossils. Consider a scenario where it takes him approximately 50 hours to find 100 fossils. Then, it would cost him an almost similar amount in wages. For instance, 50 hours x $26 - $1,000 in wages lost = 300 fossils. The 300 fossils sold at $10 each give $3,000. Question 4 A $15 pay translates to Arnold spending more of his time looking for fossils. Question 5 The situation gives an insight to the law of supply. Arnold would consider increasing his fossil supply with an increase in price. Part I Question 1

Surname 3 An increase in electricity cost lowered the number of frozen goods Mary had on sale. Question 2 Mary reduced the number of cosmetics on sale to focus on more candy. Question 3 The low rent at the store prompted Mary to increase the quantity of goods in her store. Question 4 The thought of competition and a huge profit margin caused Mary to decrease the quantity of goods she had on sale. Part II Work Cited

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Surname 4 Dancun, Ian. Principles of Business . Salem Press, a Division of EBSCO Information Services, Inc., 2018.

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