Exhibit 3-5 Supply for Tucker's Cola Data

Quantity supplied per week
(millions of gallons)

Price per
gallon

6

$3.00

5

2.50

4

2.00

3

1.50

2

1.00

1

.50

-Exhibit 3-5 shows the supply schedule for Tucker's Cola. If Tucker's Cola and Refresh Cola are the only two suppliers in the cola market and Refresh Cola is willing to sell 5 million gallons when the price is $3.00, 4 million gallons when the price is $2.50, 3 million gallons when the price is $2.00, 2 million gallons when the price is $1.50, 1 million gallons when the price is $1.00, and 0 gallons when the price is $0.50 or less,

Question

Exhibit 3-5 Supply for Tucker's Cola Data

Quantity supplied per week (millions of gallons)	Price per gallon
6	$3.00
5	2.50
4	2.00
3	1.50
2	1.00
1	.50

-Exhibit 3-5 shows the supply schedule for Tucker's Cola. If Tucker's Cola and Refresh Cola are the only two suppliers in the cola market and Refresh Cola is willing to sell 5 million gallons when the price is $3.00, 4 million gallons when the price is $2.50, 3 million gallons when the price is $2.00, 2 million gallons when the price is $1.50, 1 million gallons when the price is $1.00, and 0 gallons when the price is $0.50 or less,

Quizplus · Accepted Answer

To find the market quantity supplied at a certain price, we add the quantities supplied by both Tucker's Cola and Refresh Cola at that price. For example, at a price of $3.00 per gallon, Tucker's Cola will supply 6 million gallons and Refresh Cola will supply 5 million gallons, so the market quantity supplied will be 11 million gallons. Using this method for all prices, we can create a market supply schedule and curve. At a price of $2.00 per gallon, Tucker's Cola will supply 4 million gallons and Refresh Cola will supply 3 million gallons, for a market quantity supplied of 7 million gallons. Therefore, choice A is the correct answer. Choice B cannot be determined from the information given. Choice C is incorrect because the market quantity supplied is actually increasing as price decreases. Choice D is also incorrect because the market supply curve is upward sloping, not horizontal.