Ask Question
12 May, 18:37

The supply function for good X is given by Qxs = 1,000 + PX - 5PY - 2PW, where PX is the price of X, PY is the price of good Y and PW is the price of input W. If the price of input W increases by $10, then the supply of good X

+5
Answers (1)
  1. 12 May, 18:42
    0
    Will increase by 10 units

    Explanation:

    Given the formula for quantity supplied Qxs = 1,000 + PX - 5PY - 2PW

    We are told to gauge the effect of increase in input (W) on quantity supplied (Qxs)

    So assuming this protein of the equation is constant

    1,000 + PX - 5PY = k

    That is there is no change in price of X and Y

    Qxs = k - P (W)

    So it can be seen that an increase in P (W) is a negative change in the equation

    Qxs k - ∆10

    Resulting in reduction in Qxs by 10
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The supply function for good X is given by Qxs = 1,000 + PX - 5PY - 2PW, where PX is the price of X, PY is the price of good Y and PW is ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers