Refer to the above graph.Using Q_s for quantity supplied and P for price, which of the following equations correctly states the supply of this product? A)P = 4 + .2Q_s. B)P = 60/Q_s. C)P = 10Q_s - 2P. D)P = 2 + .2Q_s.

Question

Quizplus · Accepted Answer

Looking at the graph, we can see that the supply curve is upward sloping, which means that as the quantity supplied increases, the price also increases. The equation that correctly reflects this relationship is P = 2 + .2Q_s. This is because at a quantity supplied of 0, the price is $2 (the y-intercept), and for every unit increase in quantity supplied, the price increases by $0.2 (the slope of the curve).

Refer to the Above Graph