Figure: Supply Curve Refer to the figure. A vertical reading of the figure indicates that:
A) at a price higher than $40, the quantity supplied drops to zero.
B) at prices of $40 or less, suppliers are willing to sell at least 500 units
C) at a price of $40 per unit, suppliers are willing and able to sell 500 units.
D) at a price lower than $40, the quantity supplied drops to zero.

Question

Figure: Supply Curve  Refer to the figure. A vertical reading of the figure indicates that:
A) at a price higher than $40, the quantity supplied drops to zero. 
B) at prices of $40 or less, suppliers are willing to sell at least 500 units 
C) at a price of $40 per unit, suppliers are willing and able to sell 500 units. 
D) at a price lower than $40, the quantity supplied drops to zero.

Quizplus · Accepted Answer

A vertical reading of the figure indicates the quantity supplied at a specific price. Thus, at a price of $40 per unit, suppliers are willing and able to sell 500 units, as shown by the intersection of the supply curve and the y-axis at the point (500, $40).

Figure: Supply Curve Refer to the Figure