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____ [38]
3 years ago
8

This year is expected to be a great one for selling walk shoes in Georgia. At very low prices, only the most efficient shoemaker

s are able to sell. There are two shoe producers that operate with the most cost-effective equipment and skilled personnel, each of which can put 1000 shoes in the market at $10. At a higher price, eight more shoemakers will enter the market. Each producer makes 12000 shoes at $25 per pair. If the price goes to $40 per pair, the existing firms increase production to 1400 each, plus four small shops open, each of which produces 500 shoes. Graph the supply curve.

Advanced Placement (AP)
1 answer:
Lady bird [3.3K]3 years ago
3 0
The supply curve will be composed of the following points
(10, 1000) from the statement: 1000 shoes in the market at $10
(25, 1200) from the statement: 12000 shoes at $25 per pair
(40, 1400) from the statement: <span>$40 per pair, the existing firms increase production to 1400 each</span>
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