Suppose the supply function is given as Qs = -6 + BP. I. Construct a supply schodule if prices are 5, 6, 7, 8, and 9 pesos. 2. Draw the corresponding supply curve. 3 If the price from 9 pesos to 10 pesos, by how much will quantity supplied change? Show your solution. 4. Suppose supply increases by 5. a. Write the new supply function b Consinuct a new sugply scheydrie and urita it

Suppose the supply function is given as Qs = -6 + BP. I. Construct a supply schodule if prices are 5, 6, 7, 8, and 9 pesos. 2. Draw the corresponding supply curve. 3 If the price from 9 pesos to 10 pesos, by how much will quantity supplied change? Show your solution. 4. Suppose supply increases by 5. a. Write the new supply function b Consinuct a new sugply scheydrie and urita it

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 25P

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In year 1 the average price of X is $10, and in year 2 the average price of X is $23. If consumers buy more units of X in year 2 than in year 1, it follows that a. the law of supply does not hold for good X. b. demand for good X could be lower in year 2 than in year 1. c. supply of good X could be less in year 2 than in year 1. d. good X buyers have received an increase in income between year 1 and year 2, and good X is a normal good.
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