Question

When the going rate is $2.00 per hour, Ann wants to babysit 12 hours each week and Pat wants to babysit 8 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: A) price = $2.00, quantity supplied = 20 and price = $4.00, quantity supplied = 40.

Step-by-step explanation:

When the price of babysitting is $2 per hour, the combined quantity supplied of labor is 20 hours (12 hours + 8 hours).

If the price of babysitting increases to $4 per hour, the combined quantity supplied of labor will double to 40 hours (24 hours + 16 hours).