Exhibit 3-5 Supply for Tucker's Cola Data
Quantity supplied per week(millions of gallons)
Price pergallon
6
$3.00
5
2.50
4
2.00
3
1.50
2
1.00
1
.50
Exhibit 3-5 shows the supply schedule for Tucker's Cola. If Tucker's Cola and Refresh Cola are the only two suppliers in the cola market and Refresh Cola is willing to sell 5 million gallons when the price is $3.00, 4 million gallons when the price is $2.50, 3 million gallons when the price is $2.00, 2 million gallons when the price is $1.50, 1 million gallons when the price is $1.00, and 0 gallons when the price is $0.50 or less,
A. the market quantity supplied of cola will be 7 million gallons when the price is $2.00.
B. Tucker's Cola follows the law of supply, but Refresh Cola does not.
C. the market quantity supplied of cola is decreasing as price increases.
D. the market supply curve is horizontal.
Answer: A
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