SOLUTION: Please help me to solve this. The supply function qs=f(p) for a product is quadratic.Three points which lie on the supply
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-> SOLUTION: Please help me to solve this. The supply function qs=f(p) for a product is quadratic.Three points which lie on the supply
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Question 881046: Please help me to solve this. The supply function qs=f(p) for a product is quadratic.Three points which lie on the supply function are (30,1500),(40,3600) and (50,6300). (i) determine the equation of the supply function. (ii)define restricted domain of the function. compute and interpret p intercept. Answer by Fombitz(32388) (Show Source):
You can put this solution on YOUR website! The quadratic has the form,
1.
.
.
.
Similarly,
2.
and
3.
Subtracting eq. 1 from eqs. 2 and 3,
4.
and
5.
Substituting from eq. 4 into eq. 5,
Then,
and finally,
.
.
.
.
.
.
20 is the lowest price of the item (usually it gets lower as quantity increases, in this case, it's more expensive to make more, that's counterintuitive)
