Homework SourseBelow is the supply schedule for ink cartidges The current p
Solution
Supply schedule:
A supply schedule is a table that shows the relationship between the price of a good and the quantity supplied. Under the assumption of perfect competition supply is determined by marginal cost is, firms will produce additional output while the cost of producing an extra unit of output is less than the price they would receive.
A hike in the cost of raw goods would decrease supply, shifting costs up, while a discount would increase supply, shifting costs down and hurting producers as producer surplus decreases.
The given table:
Price of ink (per cartridge($))
Quantity of ink cartridges supplied (billions of cartridges
14
2
16
3
20
5
24
7
26
8
The following diagram shows that to increase in the price of ink cartridge, what happen in the quantity of ink cartridge:
http://www.jpeg-optimizer.com/uploaded_images_final/supply%20curve__1454295582_219.91.253.9.jpg
In the above diagram shows that:
On X-axis, the quantity of ink cartridges and
On Y-axis, the price of ink cartridges.
If the Price is at $14, the quantity produces 2 billions of ink cartridges. Then the price increases to $20, the quantity increases to 5 billion. If price increase to $24, then quantity produce at 7 billions. Therefore the supply of ink cartridges also increases.
| Price of ink (per cartridge($)) | Quantity of ink cartridges supplied (billions of cartridges |
| 14 | 2 |
| 16 | 3 |
| 20 | 5 |
| 24 | 7 |
| 26 | 8 |
