The supply curve of a firm is given by the equation $q = 250 p - 250$ . If the price decreases by 2 units, ______

quantity increases by 250

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quantity decreases by 250

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quantity increases by 500

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quantity decreases by 500

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Solution

The correct option is D
quantity decreases by 500

Initially, let the price be $p_{1}$
$Q u a n t i t y, q_{1} = 250 p_{1} - 250$
At a price of $p_{1} - 2$
$Q u a n t i t y, q_{2} = 250 (p_{1} - 2) - 250 q_{2} = (250 p_{1} - 250) - 500 q_{2} = q_{1} - 500$

Quantity reduces by 500 units

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The supply curve of a firm is given by the equation q=250p−250. If the price decreases by 2 units, ______

The correct option is D quantity decreases by 500 Initially, let the price be p1 Quantity, q1=250p1−250 At a price of p1−2 Quantity, q2=250(p1−2)−250q2=(250p1−250)−500q2=q1−500 Quantity reduces by 500 units

The supply curve of a firm is given by the equation $q = 250 p - 250$ . If the price decreases by 2 units, ______

The correct option is D
quantity decreases by 500

Initially, let the price be $p_{1}$
$Q u a n t i t y, q_{1} = 250 p_{1} - 250$
At a price of $p_{1} - 2$
$Q u a n t i t y, q_{2} = 250 (p_{1} - 2) - 250 q_{2} = (250 p_{1} - 250) - 500 q_{2} = q_{1} - 500$

Quantity reduces by 500 units