History Bookmarks Window Help Managerial EconomicsSummer 201

History Bookmarks Window Help Managerial Economics-Summer 2018-Section 001 cecili lomework: Chapter 2: Supply and Demand ore: 0 of 1 pt 7 of 18 (14 complete) Concept Question 2.2 ssume a supply equation: Q 0.1p-0.02p+0.01N +0.01T-0.1w here: p own price Q quantity supplied (thousands of units) Pi price of an input-$60 N number of firms 500 T index of technology 600 w wage rate $100 The quantity supplied as a function of the price can be written: nter your answer in the answer box and then click Check Answer remaining Clear A

Solution

The supply equation is Q = 0.1p - 0.2pi + 0.01N + 0.01T - 0.1w.

To get the supply equation as a function of price, substitute the other variables with the values given.

Q = 0.1p - 0.02(50) + 0.01(500) + 0.01(600) - 0.1(100)

Q = 0.1p - 1 + 5 + 6 -10

Q = 0.1p -11 + 11

Q = 0.1p