Answer to Question #135501 in Microeconomics for Kelvin

Question

You are given a specific supply schedule
Qsx=20Px;where Qsx is the quantity supplied and Px is the price per unit.
a)derive the producer's supply schedule
b) derive the producer's supply curve
c) what things have been kept constant in the given supply function
d)what is the minimum price that this producer must be offered in order to induce him to start supplying good X to the market?

Answer 1

a) The producer's supply schedule is:

Px = 1, 2, 3, 4, 5, Qsx = 20, 40, 60, 80, 100.

b) The producer's supply curve is an upward-sloping curve, which starts at the point (0; 0) and goes through the points (20; 1), (40; 2), (60; 3), (80; 4), (100; 5).

c) The coefficient 20 has been kept constant in the given supply function.

d) The minimum price that this producer must be offered in order to induce him to start supplying good X to the market is 1/20 = 0.05.