Exhibit 3-5 Supply for Tucker's Cola Data $$\begin{array} { | c | c | }
\hline \begin{array} { c }
\text { Quantity supplied per week } \
\text { (millions of gallons) }
\end{array} & \begin{array} { c }
\text { Price per } \
\text { gallon }
\end{array} \
\hline 6 & \$ 3.00 \
5 & 2.50 \
4 & 2.00 \
3 & 1.50 \
2 & 1.00 \
1 & .50 \
\hline
\end{array}$$ In reference to Exhibit 3-5, assume the price of Tucker's Cola is $1.00 per gallon. If the price were to rise to $3.00 per gallon, and all other factors, such as taxes, etc. remained constant, the result would be a(n):

Question

Exhibit 3-5 Supply for Tucker's Cola Data $$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Quantity supplied per week } \
\text { (millions of gallons) }
\end{array} & \begin{array} { c } 
\text { Price per } \
\text { gallon }
\end{array} \
\hline 6 & \$ 3.00 \
5 & 2.50 \
4 & 2.00 \
3 & 1.50 \
2 & 1.00 \
1 & .50 \
\hline
\end{array}$$ In reference to Exhibit 3-5, assume the price of Tucker's Cola is $1.00 per gallon. If the price were to rise to $3.00 per gallon, and all other factors, such as taxes, etc. remained constant, the result would be a(n):

Quizplus · Accepted Answer

An increase in price from $1.00 to $3.00 per gallon, with all other factors constant, leads to an increase in the quantity supplied from 2 million gallons to 6 million gallons, as shown in the table. This is an increase in quantity supplied, not an increase in supply, which would imply a shift of the supply curve.

Exhibit 3-5 Supply for Tucker's Cola Data In Reference to Exhibit 3-5, Assume the Price of Tucker's