Share
Explore BrainMass

Supply Curve

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?

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. ...

Solution Summary

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

$2.19