True or False: Line B has a slope of infinity. (look at line labelled b) The following graphs show the relationship between the price of apples and the quantity of apples supplied in two different regions, the North and the and South. Assume that the two lines are parallel. In the North, if the price goes up by $0.20 per pound, then the quantity supplied in the North goes up by 100 pounds per year. If the price of apples goes up by $0.20 in the South, what will happen to the quantity supplied? A. The quantity will decrease by 100 pounds per year. B. There is not enough information given to determine the supply change in the South. C. The quantity will increase by 100 pounds per year. D. The quantity will increase by 50 pounds per year.
True or False: Line B has a slope of infinity. (look at line labelled b) The following graphs show the relationship between the price of apples and the quantity of apples supplied in two different regions, the North and the and South. Assume that the two lines are parallel. In the North, if the price goes up by $0.20 per pound, then the quantity supplied in the North goes up by 100 pounds per year. If the price of apples goes up by $0.20 in the South, what will happen to the quantity supplied? A. The quantity will decrease by 100 pounds per year. B. There is not enough information given to determine the supply change in the South. C. The quantity will increase by 100 pounds per year. D. The quantity will increase by 50 pounds per year.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter3: Demand Analysis
Section: Chapter Questions
Problem 1.6CE
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Question
True or False: Line B has a slope of infinity. (look at line labelled b)
The following graphs show the relationship between the price of apples and the quantity of apples supplied in two different regions, the North and the and South. Assume that the two lines are parallel.
In the North, if the price goes up by $0.20 per pound, then the quantity supplied in the North goes up by 100 pounds per year. If the price of apples goes up by $0.20 in the South, what will happen to the quantity supplied?
A. The quantity will decrease by 100 pounds per year.
B. There is not enough information given to determine the supply change in the South.
C. The quantity will increase by 100 pounds per year.
D. The quantity will increase by 50 pounds per year.
Transcribed Image Text:B
А
Х-аxis
Y-аxis
Transcribed Image Text:North
South
APPLES (Thousands of pounds per year)
PRICE (Dollars per pound)
Expert Solution
Step 1
a)
The line which has a slope of infinity is a line parallel to y-axis. Looking at the graph given, it can be seen that line A is a vertical line parallel to y-axis and has a slope of infinity.
Therefore, line B doesn't has a slope of infinity and hence the statement is false.
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