Chapter 8.4, Problem 14HP

To determine

To describe:a real − world relationship between two

Answer to Problem 14HP

There is positive relationship between quantity supplied and price of commodity.

Explanation of Solution

Calculation:

Consider the example that shows the supply of goods at different days:

Price ($) [x]	Quantity supplied [y]
10	100
20	150
30	200

The rate of change is change in one quality with respect to another quantity.

Mathematically:

  $Rateof\text{}\text{}\text{}\text{}change=\frac{change\text{}\text{}iny}{changeinx}$

Thus, the rate of change is change in quantity supplied with respect to change in price.

  $\begin{array}{l}\text{Rate of change=}\frac{\text{150-100}}{\text{20-10}}\\ \text{=}\frac{\text{50}}{\text{10}}\text{=5}\end{array}$

It means that quantity supplied is increased by 5 units per dollar.

Conclusion:

Hence, the example shows that there is positive relationship between quantity supplied and price of commodity.