Chaptor 3 InQuizitive Chapter 3 The Market at Work Supply an

.Chaptor 3 InQuizitive: Chapter 3: The Market at Work: Supply and Demand Chapter 3: The Market at Work: Supply and Demand e Page(s) 83-85 3.3. What determines supply? Consider the ollowing supply schedule for a coffee shop: Price of coffee per cup Number of cups supplied $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 100 80 60 40 20 If the price of a cup of coffee increases from $3.00 to $5.00, how many additional cups will the coffee shop supply? cups Click or top the humbers or use your keyboard to type. If you\'re not sure, just take a guess. 0 1 2 3 4 5 6 7 8 9 Done

Solution

If P = 3 then firm will supply 20.
If P = 5 then firm will supply 60.

Thus additional cups to be supplied = 60 - 20 = 40.