The supply function for good X is given by Q_x^s = 1,000 + P_X − 5P_Y − 2P_W,where P_X is the price of X,P_Y is the price of good Y,and P_W is the price of input W.If the price of input W increases by $10,then the supply of good X:

Question

Quizplus · Accepted Answer

The supply function shows that the supply of good X decreases by 2 units for every $1 increase in the price of input W. Therefore, a $10 increase in the price of input W would decrease the supply of good X by 20 units, not increase it or decrease it by 10 units. None of the provided statements accurately describe this outcome.

The Supply Function for Good X Is Given by Qxs

The Supply Function for Good X Is Given by Q_x^s