Suppose that the supply of a good is given by Q = -50 + 5P, where Q is the quantity supplied and P is the price measured in dollars per unit. This equation indicates that the quantity supplied increases by _____ units for every dollar increase in price.
A) 5
B) 45
C) 50
D) 55

Question

Quizplus · Accepted Answer

The coefficient of P in the supply equation Q = -50 + 5P represents the change in quantity supplied for a one dollar increase in price, which is 5 units.

Suppose That the Supply of a Good Is Given by Q