Final answer:
To determine how much producers will supply at a price of $2, we substitute $2 into the supply function S(p) = 16 + 2p, resulting in S(2) = 20. Producers are therefore willing to supply 20 hundred units at that price, exemplifying the law of supply.
Step-by-step explanation:
The student is asking a question related to the concept of supply in economics, which is represented by a supply function. However, the main focus is on applying mathematical skills to find out the quantity that producers will supply at a given price, using a supply function equation.
The supply function is typically a relationship between the price of a good and the quantity of that good that producers are willing to supply.
In the scenario provided, suppose the supply function is S(p) = 16 + 2p, where p represents the price in dollars. To find out how much producers will supply at a price of $2, we would substitute p with 2 in the supply function: S(2) = 16 + 2(2) = 16 + 4 = 20. Therefore, at a price of $2, producers will supply 20 hundred units of the product.
This exercise illustrates the law of supply, which indicates that there is a direct relationship between price and the amount of goods that suppliers are willing to produce. As prices increase, suppliers are generally willing to supply more, and as prices decrease, they are willing to supply less.