Question

In anticipation of a hurricane, demand for tortillas goes up. Oyama's store produces tortillas. Based on the chart, how will Oyama respond to the new demand for tortillas? (4 points)

Price and quantity supplied will decrease.

Price will increase as quantity supplied decreases.

Price will decrease as quantity supplied increases.

Price and quantity supplied will increase.

Answer 1

Based on the chart, both price and quantity supplied will increase.

Answer 2

Answer: Price and quantity supplied will increase.

Based on the chart, price and quantity supplied will increase. This is possible because of the increased demand for tortillas in anticipation of the hurricane.

The X axis shows the quantity supplied. It shows how the quantity has gone from 500 to 2500. On the other hand, the Y axis shows the price, which has increased from $0.05 to $0.25.