Question

When the going rate is $2.00 per hour, Ann wants to babysit 6 hours each week and Pat wants to babysit 4 hours each week. If the rate goes up to $4.00, Ann and Pat both double the number of hours they are willing to babysit each week. Based on this information, a combined supply curve will pass through the points:A) price = $2.00, quantity supplied = 20 and price = $4.00, quantity supplied = 40.

B) price = $2.00, quantity supplied = 10 and price = $4.00, quantity supplied = 20.
C) price = $2.00, quantity supplied = 6 and price = $4.00, quantity supplied = 4.
D) price = $2.00, quantity supplied = 4 and price = $4.00, quantity supplied = 6.

Answer 1

The answer is: B) price = $2.00, quantity supplied = 10, and price = $4.00, quantity supplied = 20.

Step-by-step explanation:

POINT A - If the price is $2, then:

• Ann will babysit 6 hours
• Pat will babysit 4 hours

In the supply curve, at a $2 price, quantity supplied will be 10 hours (6 + 4).

POINT B - If the price is $4, then:

• Ann will babysit 12 hours
• Pat will babysit 8 hours

In the supply curve, at a $4 price, quantity supplied will be 20 hours (12 + 8).