Use the following to answer questions :
Table 3-1
-According to Table 3-1, we can be fairly certain that:
A)demand and supply are directly related.
B)if price increases to $6.00, the quantity supplied will increase.
C)if price falls to $0.75, supply will drop to 0.
D)some people will pay almost anything for potato chips.
E)one of the curves is about to shift.

Question

Use the following to answer questions :
Table 3-1 
-According to Table 3-1, we can be fairly certain that:
A)demand and supply are directly related. 
B)if price increases to $6.00, the quantity supplied will increase. 
C)if price falls to $0.75, supply will drop to 0. 
D)some people will pay almost anything for potato chips. 
E)one of the curves is about to shift.

Quizplus · Accepted Answer

The table shows a direct relationship between price and quantity supplied, as the price increases the quantity supplied also increases. However, we cannot infer anything about demand or the willingness of consumers to pay a high price for potato chips. Furthermore, the table does not provide enough information to determine if a change in price to $0.75 would result in a drop in supply to zero. Lastly, there is no evidence to suggest that one of the curves is about to shift.

Use the Following to Answer Questions