Question

SUPPLY

Use the supply schedule below that shows how much software Software House will produce at different prices to answer the following questions

Price of Software	Quantity Supplied
$50	100
$40	90
$30	70
$20	30
$10	10
$5	1

1. How many video games would the company be willing to sell at $20.00 and at $40.00? How many more video games are they willing to sell at $40.00 compared to $20.00? Graph Software House’s supply curve for software.

Answer 1

A supply schedule shows various quantities of a commodity a producer is willing to produce and sell at various possible prices during a particular period of time.

From the given supply schedule, we can see that at the price of $20.00 , the company is willing to sell 30 units of video games. At the price of $40.00, the company is willing to sell 90 units of video games.

We can see that more quantity of video games is being supplied at a price of $40.00 than at the price of $20.00.

At a price of $40.00 , the company is willing to sell 60 more units of video games as compared to$20.00. It is calculated as -

Quantity supplied at $40 - Quantity supplied at $20

= 90 - 30

=60

Hence, the company is willing to sell 60 more video games at a price of $40.00 compared to $20.00.

Supply curve of software house-