What is the equation of the supply curve if input prices

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Reference no: EM13736578

Suppose the supply curve is given by:

Qs = -200 +20Px -5Pi + 0.5Pz

Where:

Qs= quantity supplied of good X

Px= price of good X

PI=price of inputs to good X

Pz=price of good Z

a. What is the equation of the supply curve if input prices are $10 and the price of Z is $20?

b. Graph the supply curve that you found in part a) showing intercepts and slope.

c. What is the minimum price at which the firm will supply any of good X at all?

d. If the price of good X is $25, what is the quantity supplied. Label this point on your graph.

e. Suppose the price of inputs falls to $5. Graph the new supply curve.

Reference no: EM13736578

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