Question

2. Depicting the supply curve (please create a separate graph from the demand graph)

a.

Graph a linear supply curve with the vertical and horizontal intercept starting at a point

above the origin (0,0). Also, indicate a specific price and quantity supplied

b. Describe the supply curve with reference to the following characteristics:

i. The supply curve as a schedule of the relationship of price and quantity (Law of

Supply) (I suggest discussing the nature of the intercept and then nature of the

curve).

ii. The supply curve in terms of marginal cost of a good to the supplier.

iii. The supply curve in terms of a reserve (lowest) price for a single good.

iv. The supply curve in terms of the quantity of goods the supplier is willing to sell

.

v. Movement along the supply curve versus shifts of the supply curve

Answer 1