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Assume the Supply Function of Ice Cream Is Written As

Question 39

Multiple Choice

Assume the supply function of ice cream is written as: Qs = 100 + 20P - 10Pm,where Qs is the quantity supplied,P is price of ice cream,and Pm is the price of milk ($/gallon) .If milk price is held fixed at $4/gallon,what is the slope of supply function for ice cream?


A) -10
B) 10
C) -20
D) 20

Correct Answer:

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