Question

The following is the supply schedule for shrimp. If the price increases by $0.20 from $3.40 to $3.60, there is a 50 unit increase in the quantity supplied. If the price increases by $0.20 from $3.80 to $4.00, what is the resulting increase in quantity supplied? Price per Pound Qs $3.00 540 $3.20 600 $3.40 650 $3.60 700 $3.80 720 $4.00 730 Select the correct answer below:_______a. 50 units b. 30 units c. 10 units d. Not enough information.

Answer 1

Answer:

the answer is C

Explanation:

Answer 2

Answer:

Option (c) is correct.

Explanation:

Given information indicates that there is a positive relationship between the price of the good and the quantity supplied of that good. This means that as the price of the good increases then as a result quantity supplied also increases.

When price changes from $3 to $3.20, then quantity supplied increases by:

= 600 - 540

= 60 units

When price changes from $3.20 to $3.40, then quantity supplied increases by:

= 650 - 600

= 50 units

When price changes from $3.40 to $3.60, then quantity supplied increases by:

= 700 - 650

= 50 units

When price changes from $3.60 to $3.80, then quantity supplied increases by:

= 720 - 700

= 20 units

When price changes from $3.80 to $4.00, then quantity supplied increases by:

= 730 - 720

= 10 units