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Abusiness dealing in cell phones might supply 3000  units if the price is   5000 LE each, but if the price increases to 6100 LE they might supply 2800 unit

Question

A business dealing in cell phones might supply 3000 units if the price is 5000 LE each, but if the price increases to 6100 LE they might supply 2800 units.

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Solution

It seems like you're asking about the concept of supply in economics, particularly how changes in price can affect the quantity supplied. Here's a step-by-step explanation:

  1. The business currently supplies 3000 units of cell phones at a price of 5000 LE each. This is their initial supply quantity at the initial price.

  2. If the price increases to 6100 LE each, the business adjusts its supply to 2800 units. This is the new supply quantity at the new price.

  3. This scenario demonstrates the law of supply in economics, which states that as the price of a good increases, the quantity supplied also increases, all other factors being constant. However, in this case, the quantity supplied decreases when the price increases, which is unusual.

  4. This could be due to several reasons. Perhaps the business is unable to keep up with the increased demand at the higher price, or there may be other factors at play that are causing the business to reduce its supply.

  5. To fully understand this situation, we would need more information about the business's costs, capacity, and other market conditions.

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