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 is linear and passes through the point (3,718), where 3 is the quantity supplied (QS) and 718 is the price (P). The price at which sellers are not willing to supply is $700, indicating the y-intercept of the supply curve. Using the point (3,718) and the y-intercept 700, we can find the slope: (718-700)/(3-0) = 6. Thus, the equation is P = 700 + 6QS.

The Price at Which Sellers Are Not Willing to Supply