A supply curve is given by QS = 4 + 3P. Draw the supply curve. You...

A supply curve is given by QS = 4 + 3P. Draw the supply curve. You don't have to draw to scale. Clearly show what happens on this supply curve when the price falls from $18 to $15. Label all appropriate points, as well as numerical values for prices and quantities. Include arrows to clarify.

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Expert Solution

As it can be seen in the graph that when the price decreases from the $18 to $15, then the quantity supplied decrease from 58 unit to 49 units. So, in this case, there will be downward movement along the supply curve. All this has been shown in the below diagram.

Initially, at point A where the price was $18 and quantity supply was 58 units but when the price decrease from 18 to 15, then the quantity supplied decreases to 49 units.

Rahul Sunny answered 1 year ago

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