Question

James Food inc. is one of many firms that sells apples. If the price of an apple is too low:

A. James Food Inc. would increase profit by increasing output

B. the quantity supplied of apples by James food inc. could be zero

C. the supply curve for apples will shift to the left

D. James food inc. can and should raise the price of the product.

Answer 1

Here James food is one among the different sellers so this is an perfect competitive market because all the sellers are selling the same type of product and that is Apple and if the price of Apple is too low then then supply will also be low because it follows the law of supply

Which says that price and supply are directly related if other things held constant

If the supply decreases then it will shift the supply curve leftwards.

It does not causes the quantity supplied to be zero

Since the market is perfect competitive so only the company James food cannot increase the price because price in this market is decided by the market forces that is demand is supply and not by the buyers or the sellers

Hence the correct answer here is option C