Question

if the supply curve for a good is qs = 4p - 4, then the highest price at which no producer is willing to sell the good (i.e., the supply choke price) is:

Answer 1

The highest price at which no producer is willing to sell the good is $1.

Step-by-step explanation:

The highest price at which no producer is willing to sell the good is known as the supply choke price. To determine the supply choke price, we need to find the price at which the quantity supplied is zero. In the given supply curve equation, qs = 4p - 4, set the quantity supplied (qs) to zero and solve for the price (p).

0 = 4p - 4

4p = 4

p = 4/4

p = 1

Therefore, the highest price at which no producer is willing to sell the good is $1.