Figure: Supply Curve Refer to the figure. A vertical reading of the figure indicates that:

Question

Figure: Supply Curve  Refer to the figure. A vertical reading of the figure indicates that:

Quizplus · Accepted Answer

A vertical reading of the supply curve indicates the quantity supplied at a specific price. In this case, a vertical reading of $40 on the supply curve shows that suppliers are willing and able to sell 500 units at that price. Option A and D are incorrect because they indicate a drop to zero in quantity supplied at prices either higher or lower than $40, which is not indicated by the figure. Option B is also incorrect because it implies a range of prices where suppliers are willing to sell at least 500 units, whereas the figure only shows 500 units at a specific price of $40.

Figure: Supply Curve Refer to the Figure