Purchase Solution

Supply Curve

Not what you're looking for?

Ask Custom Question

The question was to assume that the market for electric toasters is competitive and that the quantity supplied per year depends as folows on the price of a toaster:

Price of a Toaster Number of Toasters Supplied (millions)
12 4.0
14 5.0
16 5.5
18 6.0
20 6.3

Plot the supply curve for toasters. Is this relationship direct or inverse? Do supply curves generally show direct or inverse relationships?

Purchase this Solution
Solution Summary

Plot the supply curve for toasters. Is this relationship direct or inverse? Do supply curves generally show direct or inverse relationships?

Solution Preview

The relationship is direct because the supply curve is sloping upwards. (You can see this in the attachment). This basically tells us that as the price for toasters increase, the supply of toasters also increases.

In general supply curves are direct. ...

Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

View More Free Quizzes
Related BrainMass Solutions

  • Determinants of Supply

    This will drag the supply curve to the left.

  • short run supply

    45166 short run supply Graphically illustrate short run supply. Also include on your graph the long-run aggregate supply curve. At what point must the short-run aggregate supply curve and the long-run aggregate supply curve intersect?

  • Marginal Cost Curve in Firm's Supply Curve

    181535 Marginal Cost Curve in Firm's Supply Curve 6. What portion of the marginal cost curve is the competitive firm's supply curve? How is a competitive firm's marginal cost curve related to the market supply curve?

  • Beneficial and adverse supply shocks

    17225 Beneficial and Adverse Supply Shocks What are supply shocks? Distinguish between beneficial and adverse supply shocks. Do such shocks affect the short-run supply curve, the long-run supply curve, or both?

  • Shift and Movement of demand/supply curves

    Change in supply D. Shifting the supply curve E. Change in price F. Movement along the supply curve A movement along the supply curve is caused by change in price of good or service.

  • Demand and supply analysis

    curve, while a change in supply is a shift in the supply curve b.

  • Shifts in the Demand Curve

    .// Shifts in the Supply Curve Changes in price result in movement along the supply curve but changes in other relevant factors cause a shift in supply. That is, there is a shift of the supply curve to the left or right.

  • Demand and Supply Curves

    If both demand curve and supply curve shift, then the situation will be Demand curve = Q= 21000 - 500P Supply Curve = Q = 9000 + 1000P The equilibrium price 'P' will be 8 and the quantity will be 17,000/-.

  • Demand-Supply curve

    The fourth diagram shows that when the supply decreases the supply curve shifts left and the price of the goods increases and the demand decreases and the new equilibrium level shifts left. Demand-Supply curve is depicted.

  • Supply and Demand Curves Movements and Representations

    Price is the only factor to cause a movement along the curve and it is called a "change in quantity supplied" A change in supply or in this case an "increase in supply" is represented by a shift in the supply curve.

View More Related Solutions