Question

1. according to the law of supply, price and quantity supplied move in direction(s). supply schedules and supply curves the law of supply can be represented in numbers using a supply schedule or it can be represented as a graph showing a supply curve. answer question 5 to illustrate the connection between a supply schedule and a supply curve. 5. simon, an enthusiastic consumer of music downloads, has taken a keen interest in the industry. he has started his own company, simon, inc., which manufactures premium mp3 players. use the supply schedule below to create a supply curve for simons company on the grid shown. label the curve s1. supply schedule for simon, inc. price (dollars) quantity demanded (units) $100 200 $200 300 $300 400 $400 500 $500 600 $600 700 $700 800 use the graph you created in question 5 to answer questions 6 - 8. 6. the supply curve shows that at a price of $300, simon, inc., will offer to sell premium mp3 players, and at a price of $600, the company will offer to sell premium mp3 players. 7. the companys selling behavior demonstrates the law of 8. the change in production of simon, inc., at different prices is a change in

Explanation:

Step1: Recall law of supply concept

The law of supply states that, ceteris paribus, as the price of a good increases, the quantity supplied of the good increases, and as the price decreases, the quantity supplied decreases.

Step2: Analyze Simon, Inc. situation

At a price of $300, Simon, Inc. offers to sell a certain quantity of premium mp - 3 players, and at $600, it offers to sell more. This shows that as the price increases, the quantity supplied increases, which is in line with the law of supply.

Step3: Determine the change in production behavior

The change in production of Simon, Inc. at different prices is a change in quantity supplied. This is because it is a movement along the supply curve in response to a change in price.

Answer:

Quantity supplied