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Welcome to the Q&A for ECN/APEC 2010, where you can ask questions and receive answers from your fellow students, the TA, and your professor.

Please only ask questions about the material for the course. Try to create discussions about the material we see in class, instead of just thinking of economics in general (this is an introduction to microeconomics class, not a policy or government class).

For questions and discussions about course organization or other course related topics, come see us after class or during office hours.

Feel free to discuss quiz questions on the Q&A, but do not provide direct answers to quiz questions before the quiz's due date.

Midterm 1 Question 4

+1 vote
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Question: The above figure shows a graph of the market for pizzas in a large town. If the price increases from $7 to $8 per pizza, the quantity of pizzas supplied will:

Answer: Increase by 20.

Why is this? When looking at the graph, at a price of $8 the quantity supplied is 60 and at $7, the quantity supplied is 70.
asked May 1 by canvas-111f4c97e5534 (185 points)

1 Answer

+1 vote
 
Best answer
You have to follow the drop down from the supply line. You are correct that there are 70 demanded but there are only 40 supplied. With the increase from 7-8 the quantity supplied goes up from 40 to 60 making the increase total 20. Just make sure to distinguish between quantity demanded vs quantity supplied by looking at which line your connecting to the quantity axis. Hope this helps.
answered May 1 by canvas-946e15a61c43e (150 points)
selected May 3 by canvas-111f4c97e5534
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