If a supply curve goes through the point P = $10 and Qs = 320, then at a price lower than $10 there will be a shortage. $10 is the lowest price that will induce firms to supply 320 units. at a price higher than $10 there will be a surplus. $10 is the highest price that will induce firms to supply 320 units. >> both c and d

Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter6: Elasticity
Section: Chapter Questions
Problem 11QP: Suppose you learned that the price elasticity of demand for wheat is 0.7 between the current price...
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If a supply curve goes through the point P = $10 and Qs = 320, then

  1. at a price lower than $10 there will be a shortage.
  2. $10 is the lowest price that will induce firms to supply 320 units.
  3. at a price higher than $10 there will be a surplus.
  4. $10 is the highest price that will induce firms to supply 320 units.
  5. >> both c and d
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