65.3k views
1 vote
The price of the ice cream cone sold by the ice cream truck goes up 10 cents a cone. What happens in this market from the suppliers' point of view?

What changes: S or Qs?"
a) Supply (S) increases
b) Supply (S) decreases
c) Quantity supplied (Qs) increases
d) Quantity supplied (Qs) decreases

User Mickkk
by
7.2k points

1 Answer

4 votes

Final answer:

Option (c), The price increase of the ice cream cone causes the quantity supplied (Qs) to increase, meaning more cones are provided by the suppliers, but does not shift the overall supply curve (S).

Step-by-step explanation:

When the price of an ice cream cone sold by the ice cream truck goes up 10 cents a cone, the quantity supplied (Qs) typically increases from the suppliers' point of view. This is because the higher price typically encourages suppliers to offer more of the product for sale, assuming all other factors remain constant.

The increase in price does not change the overall supply (S), which would involve a shift in the supply curve. Instead, the increase in price results in a movement along the same supply curve, which indicates a change in the quantity supplied.

In economic terms, when referring to the ice cream truck case, the increase in price leads to a higher quantity supplied (Qs) but does not shift the overall supply curve (S). A shift of the supply curve would be caused by factors other than the price of the product itself, such as improvements in technology, changes in production costs, or alterations in government policies.

User Reub
by
7.0k points