Harold Kessler

2021-12-19

Suppose the suply function of product x is given by ${Q}_{x}^{S}=-30+2Px-4Pz$

a. how much of product x is produced when$Px=\mathrm{\$}80}$ and $Pz=\mathrm{\$}60}$

b.$Pz=\mathrm{\$}60}$ . Determine the supply function and inverse supply function for good x.

a. how much of product x is produced when

b.

Barbara Meeker

Beginner2021-12-20Added 38 answers

a) Below is a supply function for product x.

${Q}_{x}^{S}=-300+2Px-4pz$

Assuming that good X costs $80 and good Y costs $60, the quantity supply of good X is determined as follows.

${Q}_{x}^{S}=-30+2Px-4Pz$

${Q}_{x}^{S}=-30+2\left(80\right)-4\left(60\right)$

${Q}_{x}^{S}=-30+160-240$

${Q}_{x}^{S}=-110$

The quantity supply of good is X is -110 units. Since quantity is negative, X-branded goods cannot be produced.

b) Suppose the price of good Z is $60 the supply functions= for good X is shown below.

${Q}_{x}^{S}=-30+2Px-4Pz$

${Q}_{x}^{S}=-30+2Px-4\left(60\right)$

${Q}_{x}^{S}=-30+2Px-240$

${Q}_{x}^{S}=2Px-270$

The supply function is ${Q}_{x}^{S}=2Px-270$

22+64

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