Let the supply schedule for a single firm be Yi = 15Pi - Pe) + 7 and the best
^ guess for the expected price level Pe be related to the forecasted price P according to Pe = P^ + 0.7Pi - P^). If 200 firms are in the industry, which of
the following is the Lucas supply schedule?
A) Yi = 4.5Pi - P ) + 7
B) Yi= 4.5Pi - P^) + 700
C) Y = 900P - P^) + 700
D) Yi = 900P - P^) + 1,400
E) Yi= 900P - P^) + 1,400

Question

Let the supply schedule for a single firm be Yi = 15Pi - Pe) + 7 and the best
^ guess for the expected price level Pe be related to the forecasted price P according to Pe = P^ + 0.7Pi - P^). If 200 firms are in the industry, which of
the following is the Lucas supply schedule?
A) Yi = 4.5Pi - P ) + 7
B)  Yi= 4.5Pi  - P^) + 700
C)  Y = 900P - P^) + 700
D) Yi = 900P - P^) + 1,400
E) Yi= 900P - P^) + 1,400

Quizplus · Accepted Answer

The Answer of Let the supply schedule for a single firm be Yi = 15Pi - Pe) + 7 and the best
^ guess for the expected price level Pe be related to the forecasted price P according to Pe = P^ + 0.7Pi - P^). If 200 firms are in the industry, which of
the following is the Lucas supply schedule?
A) Yi = 4.5Pi - P ) + 7
B)  Yi= 4.5Pi  - P^) + 700
C)  Y = 900P - P^) + 700
D) Yi = 900P - P^) + 1,400
E) Yi= 900P - P^) + 1,400

Let the Supply Schedule for a Single Firm Be Yi