(Appendix) The new supply curve is

Question

Quizplus · Accepted Answer

In the new supply curve, the price (P) is a function of the quantity (Q) supplied, indicating a linear relationship between price and quantity. Among the given choices, option B is the only one that satisfies this condition as it represents a straight line with a positive slope. Option D is incorrect as it has a multiplication sign instead of a plus or minus sign, making it invalid. Option A and C have a negative coefficient of Q, which implies that as the quantity increases, the price decreases, indicating an inverse relationship. This is not consistent with the law of supply, which states that as the quantity supplied increases, the price also increases. Therefore, option B is the most appropriate choice for the new supply curve.

(Appendix) the New Supply Curve Is