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Use the Following General Linear Supply Function Q5=40+6P8PI+10FQ _ { 5 } = 40 + 6 P - 8 P _ { I } + 10 F

Question 1

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Use the following general linear supply function: Q5=40+6P8PI+10FQ _ { 5 } = 40 + 6 P - 8 P _ { I } + 10 F where Q5Q _ { 5 } is the quantity supplied of the good,P is the price of the good, PIP _ { I } is the price of an input,and F is the number of firms producing the good.If PIP _ { I } = $20 and F = 60 what is the equation of the supply function?


A) Qs=400+6PQ _ { s } = 400 + 6 P
B) Qs=40+8PQ _ { s } = 40 + 8 P
C) P=480+6QsP = 480 + 6 Q _ { s }
D) Qs=480+6PQ _ { s } = 480 + 6 P
E) none of the above

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