Assume the supply function of ice cream is written as: Qs = 100 + 20P - 10Pm,where Qs is the quantity supplied,P is price of ice cream,and Pm is the price of milk ($/gallon).If milk price is held fixed at $4/gallon,what is the slope of supply function for ice cream?

Question

Quizplus · Accepted Answer

The slope of the supply function for ice cream is determined by the coefficient of the price of ice cream (P) in the equation, which is 20. This means for every one unit increase in the price of ice cream, the quantity supplied increases by 20 units, making the slope 20.

Assume the Supply Function of Ice Cream Is Written As