3-4

The graph shows the supply and demand curves for a Cajun spice mix that Leroy manufactures in a home business. supply 1,500 X 500 - $3.99 $8.29 demand P What will happen if Leroy sets the price at $3.99? a. The supply will exceed the demand. c. The market will be in equilibrium. b. The demand will exceed the supply. d. 500 spice mixes will be demanded. 4. A new company manufactures tennis rackets. The fixed expenses are $78,490 and the variable expenses are $14 per racket produced. What is the expense of producing 3,500 rackets? a. $49,000 c. $127,490 b. $81.990 d. $147.900