Question

Microeconomics

Posted 5 months ago

```
Use the figure shown to answer the question.
Two supply curves
According to each supply curve, what quantities would be produced at $\$ 30$ ?
Choose 1 answer:
(A) \begin{tabular}{ll} $Q_{S}$ on $S_{1}$ & $Q_{S}$ on $S_{2}$ \\ \hline $\mathbf{0}$ & 30 \end{tabular}
(B) \begin{tabular}{|ll}
\hline$Q_{S}$ on $S_{1}$ & $Q_{S}$ on $S_{2}$ \\
\hline 30 & 30
\end{tabular}
(c) \begin{tabular}{ll} $Q_{S}$ on $S_{1}$ & $Q_{S}$ on $S_{2}$ \\ \hline 40 & 0 \end{tabular}
(D) \begin{tabular}{ll} $Q_{S}$ on $S_{1}$ & $Q_{S}$ on $S_{2}$ \\ \hline 0 & 0 \end{tabular}
(E) \begin{tabular}{ll|}
\hline$Q_{S}$ on $S_{1}$ & $Q_{S}$ on $S_{2}$ \\
\hline 30 & 10
\end{tabular}
```

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Answer from Sia

Posted 5 months ago

Solution

a

Identify the price level: The price level given in the question is $30

b

Locate the quantity supplied on $S_1$: At $P = 30$, the quantity supplied on $S_1$ can be found by locating the intersection of the price level $30$ with the supply curve $S_1$. According to the graph, this intersection occurs at $Q = 30$

c

Locate the quantity supplied on $S_2$: At $P = 30$, the quantity supplied on $S_2$ can be found by locating the intersection of the price level $30$ with the supply curve $S_2$. According to the graph, this intersection occurs at $Q = 10$

Answer

(E) $Q_{S}$ on $S_{1}$ = 30 & $Q_{S}$ on $S_{2}$ = 10

Key Concept

Supply Curve Intersection

Explanation

The quantities supplied at a given price level can be determined by finding the intersection points of the price level with the respective supply curves. For $P = 30$, the intersections with $S_1$ and $S_2$ are at $Q = 30$ and $Q = 10$, respectively.

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