Which of the Following Pairs of Equations Describes the Supply

question 24

Multiple Choice

Which of the following pairs of equations describes the supply and demand curves given in the accompanying demand and supply tables? $$\begin{array} { | c | c | c | } \hline \text { Price } & \text { Quantity Supplied } & \text { Quantity Demanded } \\\hline \$ 20 & 0 & 40 \\\hline \$ 25 & 10 & 40 \\\hline \$ 30 & 20 & 40 \\\hline \$ 35 & 30 & 40 \\\hline \$ 40 & 40 & 40 \\\hline \$ 45 & 50 & 40 \\\hline\end{array}$$

• A) Qs = P - 40; Qd = 40P, respectively
• B) Qs = P - 20; Qd = 40, respectively
• C) Qs = 2P - 40; Qd = 40, respectively
• D) cannot be determined

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Definitions:

Monthly Dollar Sales

The total revenue generated from sales of goods or services within a specific month, expressed in dollars.

Variable Cost

Costs that vary directly with the level of production or sales volume, such as raw materials and direct labor costs.

Break-Even

The point where total costs equal total revenues, indicating no profit or loss.

Monthly Dollar Sales

The total value of all sales made within a month, expressed in dollars.