Question

The following table contains a supply schedule for a good. Price $10 Quantity Supplied 100 ? $20 If the law of supply applies to this good, then "?" could be 100.

Answer 1

Question 7) Option D - 150

The law of supply states that other things remaining constant, an increase in the price of one good results in the increase in the quantity supplied of that good.

Here, since other factors changing are not mentioned and the table shows the price to increase from $10 to $20, the quantity supplied would increase and would be greater than 100 units. In the options given below, option A, B and C have 0, 50 and 100 respectively which is lesser than or equal to 100.

So, if the law of supply applies to this good, then the quantity supplied at $20 would be greater than any value of 100, which is option D- 150 units in this question.