Question:

Supply Curve / Equation.. Please help me.. Economics?

by  |  earlier

0 LIKES UnLike

Please help me interpret dis equation

Qs = h + kPx + LPt +mPr +nT +rPe + sF

Qs = 19 + 20Px -10PI + 6T - 32Pt - 20Pe + 5F

I already have answer for some of the item

K = 20 ; for every $1 increase in the price of the good, Qs will increase by 20 units

L = -12, For Every $1 increase in the price of key inputs in the production of the good, Qs will decrease by 12 units..

HELP me with the Other Coefficient please. i don't know how to interpret them.. thanks

 Tags:

   Report

2 ANSWERS


  1. T - for every 100% increase in technology , Qs will increase by 6 units

    Pt - for every $1 increase in price for factor 'n', Qs will decrease by 32 units

    Px - for every $1 increase in price for factor 'k', Qs will increase by 20 units

    Pr - for every $1 increase in price for factor 'm', Qs will increase by 'm' units (-10?)

    F - for every 100% increase in factor 'F', Qs will increase by '+5' units


  2. h = slope coefficient; does not usually mean anything but technically means that quantity supplied is equal to h, in this case, 19 when everything else is 0.

    n = 6; for every 1$ increase in tax qs will increase by 6 units.

    i have no idea what the others mean.

Question Stats

Latest activity: earlier.
This question has 2 answers.

BECOME A GUIDE

Share your knowledge and help people by answering questions.