In the north, if the price goes up by $0.20 per pound, then the quantity supplied in the north goes up by 100 pounds per year. if the price of apples goes up by $0.20 in the south, what will happen to the quantity supplied?

In the North, if the price goes up by $0.20 per pound, then the quantity supplied in the North goes up by 100 pounds per year. If the price of apples goes up by $0.20 in the South, what will happen to the quantity supplied?

a. The quantity will increase by 100 pounds per year.

b. There is not enough information given to determine the supply change in the South.

c. The quantity will decrease by 100 pounds per year.

d. The quantity will increase by 50 pounds per year.

The answer is B.There is not enough information given to determine the supply change in the South.

From the graph, we could easily predict that the increase of south's quantity supply would be lower compared to the north. But since the graph does not mention any numbers that could be used as indicator/measurement, we do not possess enough information for supply change in south.

As a result of the price having gone up by $0.20 in the South, a. The quantity will increase by 100 pounds per year.

The lines in the graph are parallel which means that they have the same elasticity of supply. When two goods have the same elasticity of supply:

With both these lines being parallel and therefore having the same elasticity of supply, quantity will increase by 100 pounds in the South just as it did in the North when there was a similar price change.

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Options for this question are:

a. The quantity will increase by 100 pounds per year.

b. There is not enough information given to determine the supply change in the South.

c. The quantity will decrease by 100 pounds per year.

d. The quantity will increase by 50 pounds per year.

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