Question

Suppose there are five suppliers of ice cream in the town of Summerville. When the price of ice cream is $2 per scoop, Firm A is willing to sell 20 scoops, Firm B is willing to sell 50 scoops, Firm C is willing to sell 35 scoops, Firm D is willing to sell 100 scoops, and Firm E is willing to sell 40 scoops. From this information we can conclude that Group of answer choices the market quantity supplied is less than 250 scoops when the price is $2 per scoop. the market quantity supplied is greater than 250 scoops when the price is less than $2 per scoop. the market quantity supplied is greater than 250 scoops when the price is $2 per scoop. the market is in equilibrium.

Answer 1

the market quantity supplied is less than 250 scoops when the price is $2 per scoop

Step-by-step explanation:

When price is $2, the total quantity supplied = 20 + 50 + 35 + 100 + 40 = 245

At the price $2, the total quantity supplied is less than 245