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Part One -
Sally Thomas is an entrepreneur. She makes hand-made quilts and sells them at craft shows and at her home studio. Below is a market supply schedule she constructed. Answer the questions that appear below it.
Price per quilt
Quantity Supplied Per Month
$300.00
1
$400.00
2
$500.00
3
$600.00
4
$700.00
5
1. How many quilts will Sally supply at $500.00 per quilt?
2. Are any other factors besides price taken into account with the market supply schedule she has constructed?
3. Several situations are listed below that Sally has encountered in her business. Explain how each of these situations might alter the supply of quilts.
Sally purchases a new sewing machine that helps her produce quilts in less time.
Sally anticipates an increase in prices for quilts in three months.
There are twice as many quilt suppliers as there were one year ago.
Part Two -
Now think of something you might be able to make and sell. Construct your own individual market schedule. List five prices and the quantity you would supply at each price. As you do this, remember to consider how much time you have available because you still need to be able to keep up with your school work and other activities. At the same time, consider how much money you will be making on each and what your financial goals might be. Be sure to provide a description of the item you would supply as well as a paragraph describing three factors that most likely will influence the supply of your item. Include an explanation of how each factor might influence your decision on how much to supply of the item.
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