Question

Microeconomics

Posted 4 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|}
\hline$Q_{S}$ on $S_{1}$ & $Q_{S}$ on $S_{2}$ \\
\hline 0 & 30 \\
\hline
\end{tabular}
(B)
\begin{tabular}{|ll|}
\hline$Q_{S}$ on $S_{1}$ & $Q_{S}$ on $S_{2}$ \\
\hline 30 & 30 \\
\hline
\end{tabular}
(C)
\begin{tabular}{|ll|}
\hline$Q_{S}$ on $S_{1}$ & $Q_{S}$ on $S_{2}$ \\
\hline 0 & 0 \\
\hline
\end{tabular}
(D)
\begin{tabular}{|ll|}
\hline$Q_{S}$ on $S_{1}$ & $Q_{S}$ on $S_{2}$ \\
\hline 30 & 10 \\
\hline
\end{tabular}
(E)
\begin{tabular}{|ll|}
\hline$Q_{S}$ on $S_{1}$ & $Q_{S}$ on $S_{2}$ \\
\hline 40 & 0 \\
\hline
\end{tabular}
```

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Answer from Sia

Posted 4 months ago

Solution

a

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

b

Locate the quantity supplied on $S_1$: At $P = 30$, find the corresponding $Q$ on the supply curve $S_1$

c

Locate the quantity supplied on $S_2$: At $P = 30$, find the corresponding $Q$ on the supply curve $S_2$

d

Read the graph: For $S_1$, at $P = 30$, $Q_{S1} = 40$. For $S_2$, at $P = 30$, $Q_{S2} = 10$

e

Choose the correct answer: The quantities produced at $30$ are $Q_{S1} = 40$ and $Q_{S2} = 10$

Answer

(E) $Q_{S}$ on $S_{1}$ = 40, $Q_{S}$ on $S_{2}$ = 0

Key Concept

Supply Curve Analysis

Explanation

The supply curve shows the relationship between price and quantity supplied. By locating the price on the y-axis and finding the corresponding quantity on each supply curve, we can determine the quantities supplied at that price.

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