The inverse supply curve of coffee beans equals P = -5 - 2rain + Qs,where rain equals the number of inches of rain per year.How much does quantity supplied change when rain increases from 30 inches to 40 inches per year?
A) Qs decreases by 40.
B) Qs increases by 40.
C) Qs increases by 30.
D) Qs decreases by 30.

Question

Quizplus · Accepted Answer

The quantity supplied increases by 20 units, not 40, when rain increases from 30 inches to 40 inches. The change in rain is 10 inches, and since the coefficient of rain in the equation is -2, the change in quantity supplied is -2 * 10 = -20. However, since the question asks for how much the quantity supplied changes (not the direction), the correct interpretation involves a mistake in the explanation process. The correct calculation should focus on the impact of rain on the supply equation, but the final selection of the answer choice here was incorrect due to a misinterpretation of the calculation.

The Inverse Supply Curve of Coffee Beans Equals P =