Question

•  A table showing the relationship between the price of a good and the amount of it that sellers are willing and able to supply at various prices 

• The claim that, other things being equal, the quantity supplied of a good increases when the price of that good rises 

• A graphical object showing pe relationship between the price of a good and the amount that sellers are willing and able to supply at various prices 

• The amount of a good that sellers are willing and able to supply at a given price 

Apply your understanding of the previous key terms by completing the following scenario with the appropriate terminology 

Your boss would like your help on a marketing research project he is conducting on the relationship between the price of soda and the quantity of soda supplied. He hands you the following document: 

Price of Soda (Dollars per can)	Quantity of Soda Supplied (Billions of cans)
0.50	750
0.75	1,000
1.00	1,500
-1,25	2,000

Your task is to take this _______ and construct a graphical representation of the data. In doing so, you determine that as the price of soda rises, the quantity of soda supplied increases. This confirms the _______ 

Answer 1

A table showing the relationship between the price of a good and the amount of it that sellers are willing and able to supply at various prices - Supply schedule.

The claim that other things being equal the quantity supplied of a good increases when the price of that good increases - Law of supply.

A graphical object showing the relationship between the price of a good and the amount of it that sellers are willing and able to supply at various prices - Supply curve.

The amount of a good that sellers are willing and able to supply at a given price - Quantity supplied

Your task is to take this supply schedule and construct a graphical representation of the data. In doing so you determine that as the price of the soda rise, the quantity of soda supplied increases. This confirms the law of supply.