Determining Market Price Answers

demandsupplyquantityproduction

A supply schedule shows how prices affect the

Read this scenario and answer the question that follows it. Sample scenario:A factory produces blue and green widgets, both at equal production costs. In one day, the factory can make 20 widgets of either color. The factory has been making 10 blue and 10 green widgets per day because they both sell for $5.00. Recently, the price of blue widgets has increased from $5.00 each to $8.00 each.How does the law of supply say the factory will respond to the increase in the price of blue widgets?

Read the scenario below and then answer the question. Sample scenario:Scientists have created a new grass seed that stops grass growth at a specific length, eliminating the need to mow the lawn. The price of this seed is high, but many consumers still want to use it. As a result, several different producers supply a large amount of this seed to consumers. In order to attract consumers to their product, some producers lower their prices and supply fewer bags of seeds. What is the best description of the grass seed that is described in this scenario?