Question

Look at the graph. Where P is price and Q is quantity, how are point A and line s related? (5 points)
Point A is the quantity demanded at a given price: line s represents the equilibrium price.
Point A is the quantity demanded at a given price; line S represents total supply.
Point A is the quantity supplied at a given price; line S represents the demand.
Point A is the quantity supplied at a given price: line S represents the total supply.

Answer 1

The correct answer is D. Point A is the quantity supplied at a given price, line S represents the total supply.

Explanation

According to the graph, there are different prices  (vertical axis) and quantity offered (horizontal axis). In this, point A indicates that at fifteen objects the price is $10, and therefore point A explains the quantity supplied (units available) at a given price, and point B indicates that are thirty objects offered with a price of $30, which is the quantity supplied at another price. Also, line S shows the growth of the price and quantity or how the total supply changes (units available of the product) because the number of unit changes with the price. According to this, the correct answer is D. Point A is the quantity supplied at a given price; line S represents the total supply.