If the supply curve is Q_S = 4P - 4, then the highest price at which no producer is willing to sell the good (i.e., the supply choke price) is: A) 1. B) 4. C) 3. D) 2.

Name: If the supply curve is Q S = 4P - 4, then the highest price at which no producer is willing to sell the good (i.e., the supply choke price) is: A) 1. B) 4. C) 3. D) 2.
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Quizplus · Accepted Answer

The supply choke price is the price at which the quantity supplied is zero. Setting the supply equation to zero, 0 = 4P - 4, solving for P gives P = 1.

If the Supply Curve Is QS = 4P - 4

If the Supply Curve Is Q_S = 4P - 4