Given that the prices and quantities supplied per period of time in litres of gasoline is expressed as Qs = 25 + 0.25 P, Where Qs is quantity supplied, P is price
(a) Determine the quantity supplied when price per litre is (i) 0 Naira (it) 24 Naira (iii) 40 Naira (iv) 60 Naira (v) 80 Naira
(b) From your calculations in (a)(i) present the supply schedule (ii) draw the supply curve.
Explanation
(a)
(i) Qs = 25 + 0.25(0) = 25 +0 = 25 Litres
(ii) 25 + 0.25(24) = 25 + 6 = 31 Litres
(iii) 25 + 0.25 (40) = 25 + 10 = 35 Litres
(iv) 25 + 0.25 (60) = 25 + 15 = 40 Litres
(v) 25 +0.25 (80) = 25 + 20 = 45 Litres
(b) (i)
| Price (N) | Quantity (Litres) |
| 0.00 | 25 |
| 24.00 | 31 |
| 40.00 | 35 |
| 60.00 | 40 |
| 80.00 | 45 |
(b)(ii)
