The price at which sellers are not willing to supply a good is $700 per unit.If the supply curve passes through the point 3,718), what is the equation of the supply curve?

Question

Quizplus · Accepted Answer

The supply curve equation is typically in the form P = a + bQ_S. Given that the price at which sellers are not willing to supply is $700, this is the intercept (a). The point (3,718) provides the slope (b) when substituted into the equation, resulting in P = 700 + 6Q_S.

The Price at Which Sellers Are Not Willing to Supply