Question

Q3) From the specific supply function 𝑄𝑠𝑥 = 2𝑃𝑥 (Px is given in dollars), derive;

(a) the producer’s supply schedule and

(b) the producer’s supply curve?

Answer 1

Derivation of the supply function and curve

$Qsx=2Px$

$taking Qsx = 10$

$10=2Px$

$Px=5$

we will take Qsx on a range of 10-50

b.) the producer’s supply curve

Quantity supplied is expressed as a function of various variables

$Sx=f(Px,Cx,Tx)$

$Sx= Quantity supplied$

$Px=Price of the commodity$

Cx=Cost of production

Tx=Technology of production

From the supply function derived the supply curve takes the trend shown by the figure below