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Which of the following describes a supply curve? Price Quantity $1 50 $2 100 $3 150 $4 200 $5 250 $6 300 $7 350 $8 400 $9 450 Price Quantity $1 100 $2 90 $3 80 $4 70 $5 60 $6 50 $7 40 $8 30

Which of the following describes a supply curve? Price Quantity $1 50 $2 100 $3 150 $4 200 $5 250 $6 300 $7 350 $8 400 $9 450 Price Quantity $1 100 $2 90 $3 80 $4 70 $5 60 $6 50 $7 40 $8 30

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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**Question:** Which of the following describes a supply curve? **Option 1:** | Price | Quantity | |-------|----------| | $1 | 50 | | $2 | 100 | | $3 | 150 | | $4 | 200 | | $5 | 250 | | $6 | 300 | | $7 | 350 | | $8 | 400 | | $9 | 450 | **Option 2:** | Price | Quantity | |-------|----------| | $1 | 100 | | $2 | 90 | | $3 | 80 | | $4 | 70 | | $5 | 60 | | $6 | 50 | | $7 | 40 | | $8 | 30 | | $9 | 20 | **Explanation:** A supply curve typically shows the relationship between price and quantity supplied, where an increase in price results in an increase in quantity supplied. In Option 1, as the price increases, the quantity supplied also increases, which is characteristic of a supply curve. Conversely, in Option 2, as the price increases, the quantity supplied decreases, which is more characteristic of a demand curve. Therefore, Option 1 describes a supply curve.
Transcribed Image Text:**Question:** Which of the following describes a supply curve? **Option 1:** | Price | Quantity | |-------|----------| | $1 | 50 | | $2 | 100 | | $3 | 150 | | $4 | 200 | | $5 | 250 | | $6 | 300 | | $7 | 350 | | $8 | 400 | | $9 | 450 | **Option 2:** | Price | Quantity | |-------|----------| | $1 | 100 | | $2 | 90 | | $3 | 80 | | $4 | 70 | | $5 | 60 | | $6 | 50 | | $7 | 40 | | $8 | 30 | | $9 | 20 | **Explanation:** A supply curve typically shows the relationship between price and quantity supplied, where an increase in price results in an increase in quantity supplied. In Option 1, as the price increases, the quantity supplied also increases, which is characteristic of a supply curve. Conversely, in Option 2, as the price increases, the quantity supplied decreases, which is more characteristic of a demand curve. Therefore, Option 1 describes a supply curve.
The image contains two graphs that illustrate the relationship between price and quantity. ### Top Graph: Supply Curve **Description:** - The graph represents a supply curve where the x-axis is labeled as "Price" and the y-axis as "Quantity." - The curve is upward sloping, indicating a positive relationship between price and quantity supplied. **Data Points:** - At a price of $1, the quantity is 10. - At $2, the quantity is 30. - At $3, the quantity is 50. - At $4, the quantity is 70. - At $5, the quantity is 90. - At $6, the quantity is 110. - At $7, the quantity is 130. - At $8, the quantity is 150. - At $9, the quantity is 170. This graph demonstrates that as price increases, the quantity supplied increases. ### Bottom Graph: Demand Curve **Description:** - This graph represents a demand curve where the x-axis is labeled as "Quantity" and the y-axis as "Price." - The curve is downward sloping, indicating a negative relationship between price and quantity demanded. **Data Points:** - At a quantity of 20, the price is $900. - At 30, the price is $800. - At 40, the price is $700. - At 50, the price is $600. - At 60, the price is $500. - At 70, the price is $400. - At 80, the price is $300. - At 90, the price is $200. - At 100, the price is $100. This graph illustrates that as quantity demanded increases, the price decreases. ### Conclusion These graphs effectively depict the basic economic principles of supply and demand. The supply curve shows that higher prices incentivize producers to supply more, while the demand curve shows that higher prices result in less demand from consumers.
Transcribed Image Text:The image contains two graphs that illustrate the relationship between price and quantity. ### Top Graph: Supply Curve **Description:** - The graph represents a supply curve where the x-axis is labeled as "Price" and the y-axis as "Quantity." - The curve is upward sloping, indicating a positive relationship between price and quantity supplied. **Data Points:** - At a price of $1, the quantity is 10. - At $2, the quantity is 30. - At $3, the quantity is 50. - At $4, the quantity is 70. - At $5, the quantity is 90. - At $6, the quantity is 110. - At $7, the quantity is 130. - At $8, the quantity is 150. - At $9, the quantity is 170. This graph demonstrates that as price increases, the quantity supplied increases. ### Bottom Graph: Demand Curve **Description:** - This graph represents a demand curve where the x-axis is labeled as "Quantity" and the y-axis as "Price." - The curve is downward sloping, indicating a negative relationship between price and quantity demanded. **Data Points:** - At a quantity of 20, the price is $900. - At 30, the price is $800. - At 40, the price is $700. - At 50, the price is $600. - At 60, the price is $500. - At 70, the price is $400. - At 80, the price is $300. - At 90, the price is $200. - At 100, the price is $100. This graph illustrates that as quantity demanded increases, the price decreases. ### Conclusion These graphs effectively depict the basic economic principles of supply and demand. The supply curve shows that higher prices incentivize producers to supply more, while the demand curve shows that higher prices result in less demand from consumers.
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