Suppose the supply curve for shampoo has a slope of 2 and intersects the vertical axis at a price of $4 per bottle. Further suppose that the horizontal axis unit is thousands of shampoo bottles. Interpret both the y-intercept and the slope.
A) The y-intercept represents the quantity supplied, and the slope represents the price elasticity of supply.
B) The y-intercept represents the price, and the slope represents the quantity demanded.
C) The y-intercept represents the quantity supplied, and the slope represents the price elasticity of demand.
D) The y-intercept represents the price, and the slope represents the quantity supplied.
