document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=424121>Question 424121</A>: <I><SPAN STYLE=\"word-break: break-all;\"> example problems of supply function </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #295772 by </B><A HREF=/tutors/aboutme.mpl?userid=MathLover1><B>MathLover1(20850)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=MathLover1><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=MathLover1><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=295772\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> \r<BR>\n" );
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document.write( "Supply Function indicates the relationship between the <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=quantity ALIGN=MIDDLE  ALT=\"quantity\"   DISABLED_style= \"max-width:90%; height:auto;\" > of the<BR>\n" );
document.write( "commodity supplied and the <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=unit ALIGN=MIDDLE  ALT=\"unit\"   DISABLED_style= \"max-width:90%; height:auto;\" ><IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+price ALIGN=MIDDLE  ALT=\"+price\"   DISABLED_style= \"max-width:90%; height:auto;\" > of the commodity.\r<BR>\n" );
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document.write( " The <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=slope ALIGN=MIDDLE  ALT=\"slope\"   DISABLED_style= \"max-width:90%; height:auto;\" > of a supply curve is <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=usually ALIGN=MIDDLE  ALT=\"usually\"   DISABLED_style= \"max-width:90%; height:auto;\" ><IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+positive ALIGN=MIDDLE  ALT=\"+positive\"   DISABLED_style= \"max-width:90%; height:auto;\" >, as price<BR>\n" );
document.write( "increases, quantity supplied increases and vice-versa.\r<BR>\n" );
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document.write( "The <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=y-intercept ALIGN=MIDDLE  ALT=\"y-intercept\"   DISABLED_style= \"max-width:90%; height:auto;\" > of the supply curve (0,b) represents the <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=lowest ALIGN=MIDDLE  ALT=\"lowest\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=price ALIGN=MIDDLE  ALT=\"price\"   DISABLED_style= \"max-width:90%; height:auto;\" > at which an item will be supplied. \r<BR>\n" );
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document.write( "Normally, we put the good’s own price and cost into the supply function.\r<BR>\n" );
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document.write( "For the previous example that we use, \r<BR>\n" );
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document.write( "Qs=g(p, wage, capital cost)\r<BR>\n" );
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document.write( "When p increases, firms/producers want to produce more goods because it will provide them with more profit.  When cost increase, produce would like to reduce their supply given same capital constraint. \r<BR>\n" );
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document.write( "So, <BR>\n" );
document.write( "P increases ...=>...	Quantity supplied increases along the supply curve.<BR>\n" );
document.write( "Wage increases (cost increases)  -=>-- supply curve shift to the left for same price.\r<BR>\n" );
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document.write( "An example of supply function:\r<BR>\n" );
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document.write( "Qs=178+40p-20w-60r\r<BR>\n" );
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document.write( "where <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=w=wage ALIGN=MIDDLE  ALT=\"w=wage\"   DISABLED_style= \"max-width:90%; height:auto;\" > of labor, <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=r=interest_+rate ALIGN=MIDDLE  ALT=\"r=interest_+rate\"   DISABLED_style= \"max-width:90%; height:auto;\" > for producer’s loan\r<BR>\n" );
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document.write( "When <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=w=5.5 ALIGN=MIDDLE  ALT=\"w=5.5\"   DISABLED_style= \"max-width:90%; height:auto;\" > and <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+r=1.05 ALIGN=MIDDLE  ALT=\"+r=1.05\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=Qs=178%2B40p-2%2A5.5-60%2A1.05 ALIGN=MIDDLE  ALT=\"Qs=178%2B40p-2%2A5.5-60%2A1.05\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "=<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=104%2B40p ALIGN=MIDDLE  ALT=\"104%2B40p\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "Suppose <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=w=10 ALIGN=MIDDLE  ALT=\"w=10\"   DISABLED_style= \"max-width:90%; height:auto;\" >, then \r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=Qs=178%2B40p-2%2A8-60%2A1.05 ALIGN=MIDDLE  ALT=\"Qs=178%2B40p-2%2A8-60%2A1.05\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "=<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=99%2B40p ALIGN=MIDDLE  ALT=\"99%2B40p\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "So when <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=wage ALIGN=MIDDLE  ALT=\"wage\"   DISABLED_style= \"max-width:90%; height:auto;\" ><IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+rises ALIGN=MIDDLE  ALT=\"+rises\"   DISABLED_style= \"max-width:90%; height:auto;\" >, supply curve <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=shifts ALIGN=MIDDLE  ALT=\"shifts\"   DISABLED_style= \"max-width:90%; height:auto;\" > to the <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=left ALIGN=MIDDLE  ALT=\"left\"   DISABLED_style= \"max-width:90%; height:auto;\" >, which means that for a given price, producers will supply <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=less ALIGN=MIDDLE  ALT=\"less\"   DISABLED_style= \"max-width:90%; height:auto;\" > goods than before.\r<BR>\n" );
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