The supply function for a half gallon of Happy Cow Milk is QS = (0)+ (2 million × P). If the price of a Happy Cow Milk decreases by $1, how will this change the quantity supplied?

Question

Quizplus · Accepted Answer

The supply function shows that the quantity supplied changes by 2 million for every $1 change in price. Therefore, if the price decreases by $1, the quantity supplied will decrease by 2 million.

The Supply Function for a Half Gallon of Happy Cow