Question

This year is expected to be a great one for selling walking shoes in Georgia. At very low prices, only the most efficient shoemakers are able to sell. There are two shoe producers that operate with the most cost-effective equipment and skilled personnel, cach of which can put 1000 pairs of shoes in the market at $10.00. At a higher price, cight more shoemakers will enter the market. Each producer makes 1200 pairs of shoes at $25.00 per pair If the price goes to $40.00 per pair, the existing firms increase production to 1400 pairs of shoes each, plus four small shops open, each of which produces 500 pairs of shoes. Using the information above, graph the supply curve for walking shoes by dragging the provided red points to the correct coordinates of price and quantity. Market for Shoes Price per pair (5) Supply 2,000 4,000 6,000 8,000 10,000 12.000 14.000 16,000 Pairs of shoes

Answer 1

Coordinates in the form of (Pairs, Price) are as below:

(1000 × 2 = 2000, 10), (1,200 × 10 = 12000, 25), (1,400 × 10 + 500 × 4 = 16000, 40)

These are pointed in the graph and connected in order to get a supply curve (S).

Required graph is as below:

(16000, 40) (12000, 25) did 231 (2000, 10) Supply 0 2,000 4,000 6,000 8,000 10.000 12.000 14.000 15,000