Question

Suppose the supply function for product x is given by qxs = - 30 + 2px - 4pz.

a. how much of product x is produced when px = $600 and pz = $60?

Answer 1

Replace the variables with their values and do the arithmetic.

qxs = -30 +2(600) -4(60) = -30 +1200 -240

qxs = 930

930 of product x is produced.