Q.5. Observe the following table and answer the question: (A) Supply schedule of chocolates 2. State the relationship between price and quantity supplied

Q.5. Observe the following table and answer the question:

(A) Supply schedule of chocolates.

2. State the relationship between price and quantity supplied

 

Price in ₹	Quantity supplied in units
10	200
15	250
20	300
25	350
30	400
35	450
40	500

Solution:-- 

a. There is a direct relationship between price and quantity supplied.

b. The supply curve is a positive slope.

c. As the price increases the quantity supplied also increases.

d. At the lowest price 10 quantity supplied is less 200, at the highest price 40 the quantity supplied us the highest 500.

e. Supply curve moves upward from left to right.