Question

Suppose there are three massage therapists, with a supply schedule that indicates their willingness to supply massages at various prices. What is the market quantity of massages supplied at $60, and does this supply schedule follow the law of supply? a. 47; no b. 47; no c. 29; yes d. 29; yes

Answer 1

Answer:

C) 29; yes  or   D) 29; yes

Explanation:

At $60 per massage, Tracey is willing to supply 8 massages, Kira is willing to supply 15 massages and Peter is willing to supply 6 massages, so in total they are willing to supply 29 massages.  

This supply schedule follows the law of supply because the total quantity supplied increases as the price per massage increases: 18 at $40, 29 at $60 and 42 at $80.