An economist models the market for rice by the following equations. Let p represent the price per bushel (in dollars) and y represent the number of bushels produced and sold (in millions). Use the model for supply to determine at what point is the price so low that no rice is produced.
A) When the price of rice is $141.85 per bushel.
B) When the price of rice is $70.93 per bushel.
C) When the price of rice is $5.46 per bushel.
D) When the price of rice is $12.99 per bushel.
E) When the price of rice is $2.38 per bushel.

Question

An economist models the market for rice by the following equations.  Let p represent the price per bushel (in dollars) and y represent the number of bushels produced and sold (in millions). Use the model for supply to determine at what point is the price so low that no rice is produced.
A) When the price of rice is $141.85 per bushel. 
B) When the price of rice is $70.93 per bushel. 
C) When the price of rice is $5.46 per bushel. 
D) When the price of rice is $12.99 per bushel. 
E) When the price of rice is $2.38 per bushel.

Quizplus · Accepted Answer

According to the model for supply, when the price is below $2.38 per bushel, the quantity supplied is zero. Therefore, no rice is produced at this price level.

An Economist Models the Market for Rice by the Following