Consider the relationship given by Q_Cars = 100 + 4xP_Cars

Question

Consider the relationship given by Q_Cars = 100 + 4xP_Cars - 2xP_Steel - 2xP_Workers,where is the quantity of cars (in thousands),is the price of cars and P is the wage earned by autoworkers.If the price of steel is $10 per unit and the price of workers (the wage)is $20,what is the supply curve for cars? A) Q_Cars = 140 + 4xP_Cars B) Q_Cars = 100 + 4xP_Cars - 2xP_Steel -.2xP_Workers C) Q_Cars = 100 + 4xP_Cars D) Q_Cars = 40 + 4xP_Cars

Quizplus · Accepted Answer

Substitute the given prices of steel ($10) and workers ($20) into the equation: Q_Cars = 100 + 4xP_Cars - 2x10 - 2x20 = 40 + 4xP_Cars.

Consider the Relationship Given by QCars = 100 + 4xPCars