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 then click submit.
option 1 graph
price | coffee demanded
$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 2 graph
price | coffee demanded
$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 3 graph
price | coffee demanded
$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 (here, coffee) increases, the quantity supplied increases. So the supply curve should be upward - sloping.

Step2: Analyze Each Option

• Option 1: The graph shows an upward - sloping curve. As the price (on the y - axis) increases, the quantity of coffee supplied (on the x - axis) also increases. This is consistent with the law of supply.
• Option 2: The graph is downward - sloping. This would be consistent with the law of demand (quantity demanded decreases as price increases), not supply.
• Option 3: The graph shows a vertical line, meaning the quantity supplied is constant regardless of price. This does not follow the law of supply.

Answer:

Option 1