Question | The supply curve is given by Qs= –200 + 20Px 5P1 + 0.5PZ where Qs=quantity supplied of good X Px = price of good X Pj= price of inputs to good X Pz = price of good Z a. Based on the supply curve above, what is the relationship between good X and good Z? b. What is the equation of the supply curve if input prices are $10 and the price of Z is $20? c. Graph the supply curve that you found in (b), showing intercepts and slope. d. What is the minimum price at which the firm will supply any of good X at all? e. If the price of good X is $25, what is the quantity supplied? Show this point on your supply curve. f. Now suppose the price of inputs falls to $5. Graph the new supply curve. |
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Subject | business-economics |