(01.04 mc)\nuse the graph to answer the question that follows.\nwhat happens to the total quantity supplied…
(01.04 mc)\nuse the graph to answer the question that follows.\nwhat happens to the total quantity supplied when the price of the product drops below $100?\nit will be more than 100 units.\nit will be less than 100 units.\nit will be exactly 100 units.\nit will be exactly 0 units.
Answer
Explanation:
Step1: Analyze the supply - curve relationship
The supply curve shows a positive relationship between price and quantity supplied. When the price is $100$, the quantity supplied is 100 units. As the price drops below $100$, according to the law of supply (holding other factors constant, quantity supplied is positively related to price), the quantity supplied will decrease.
Step2: Determine the quantity supplied
Since the quantity supplied is 100 units at a price of $100$, when the price drops below $100$, the quantity supplied will be less than 100 units.
Answer:
It will be less than 100 units.