Question

Consider the equations for the following​ straight-line supply curves. In each​ case, p is the price​ (measured in dollars per​ unit) and QS is the quantity supplied of the product​ (measured in thousands of units per​ month). Supply​ A: pQSA​, and Supply​ B: pQSB a. Plot each supply curve on a scale diagram. In each​ case, plot point​ 1, which corresponds to price equal to​ $20, and point​ 2, which corresponds to price equal to​ $40. ​1.)

For each supply​ line, A and​ B, use the point drawing tool to plot and​ label: ​i.) points A1 and B1 ​(where price​$20). ​ii.) points A2 and B2 ​(where price​$40

Answer 1

X and Y-axis of the above diagram show QS- the quantity supplied of the product​ (measured in thousands of units per​ month) and  p-price​ (measured in dollars per​ unit) respectively. Y-axis has been plotted with scale difference of $20 (initiating with $20). X-axis has been plotted with scale difference of 10,000units (initiating with 10,000units). A and B show the two straight lined supply curves.

As per the given question, A1 and B1 are the points corresponding to $20 price. A2 and B2 are the points corresponding to $40 price. Though the corresponding values of quantity supplied depends on the slopes of the respective supply curves, we have assumed the slopes (ΔY/ΔX) of supply curves A and B to be 2 and 1 respectively.

Thus 10,000 and 20,000 units are the quantity supplied at poit A1 and B1 respectively.

Similarly, 20,000 and 40,000 units are the quantity supplied at poit A2 and B2 respectively.