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1
Understanding Supply Curves
Student’s Name
Institutions’ Name
Instructor’s Name
Due date
2
Q3. Edith is the owner and manager of a small coffee shop that employs three workers who
use one coffee machine to make and serve coffee to paying customers. The business has
begun to pick up; lines are getting longer every day in her shop. On a busy morning, she
sees her employees scrambling to take orders, get cups, fill coffee from the coffee machine,
add cream and sugar, and serve customers in a timely manner. She figures if she hires
three more employees, she'll be able to sell twice as much coffee. Do you think she's likely
to be right? Why or why not?
She is right. She will be able to sell more cups of coffee daily because the number
of workers will meet the daily demand and more demand—increasing the number of
employees by three increases the quantity supplied from Quantity 1 to Quantity 2.
Price of Coffee ($)
Effects of hiring 3 more workers on number of coffee sold
Coffee supply 1
Coffee Supply 2
Price 2
Q...