If a supply curve goes through the point P = $10 and = 320,then

Question

If a supply curve goes through the point P = $10 and  = 320,then

Quizplus · Accepted Answer

According to the given information, at a price of $10, firms will supply 320 units. Hence, $10 is the lowest price that will induce firms to supply 320 units. At prices lower than $10, firms will supply less than 320 units or may not supply at all, which implies a shortage. Therefore, option B is the correct answer. Option C is incorrect because the supply curve shows that at a price higher than $10, firms would be willing to supply more than 320 units, hence there would not be a surplus. Option D is incorrect because at a price lower than $10, firms would not be able to supply enough units to meet the demand, hence there would be a shortage.

If a Supply Curve Goes Through the Point P =