Question

decision point: determining moondogs supply curve
now that youve done your research on the law of supply, you understand that it basically asserts that how
much coffee youd be willing to supply depends on how much money you can make for each cup.
review the graphs below. select the graph that best represents the supply curve for moondogs coffee, and the
click submit.

(option 1s graph and table: price - $1.50 (50 cups), $2.00 (75 cups), $2.50 (100 cups), $3.00 (150 cups), $3.50 (200 cups), $4.00 (300 cups), $4.50 (400 cups))
(option 2s graph and table: price - $1.50 (400 cups), $2.00 (300 cups), $2.50 (200 cups), $3.00 (150 cups), $3.50 (100 cups), $4.00 (75 cups), $4.50 (50 cups))
(option 3s graph and table: price - $1.50 (150 cups), $2.00 (150 cups), $2.50 (150 cups), $3.00 (150 cups), $3.50 (150 cups), $4.00 (150 cups), $4.50 (150 cups))

Explanation:

Step1: Recall the Law of Supply

The law of supply states that, ceteris paribus, as the price of a good increases, the quantity supplied of that good increases. So the supply curve should have a positive (upward) slope.

Step2: Analyze Each Option

• Option 1: The graph shows an upward - sloping curve, which is consistent with the law of supply. As the price (on the y - axis) increases, the quantity of coffee (on the x - axis) supplied also increases.
• Option 2: The graph shows a downward - sloping curve, which is characteristic of a demand curve (law of demand: price and quantity demanded are inversely related), not a supply curve.
• Option 3: The graph shows a vertical line, which would imply that the quantity supplied is constant regardless of price, which does not follow the law of supply.

Answer:

Option 1