Assume the supply function for good X can be written as Qs = -100 + 27Px - 5Py - 1.8W, where Px = the price of X, Py = the price of good Y, and W = Wage index for workers in industry X. According to this equation:

A) X and Y are substitutes in production.
B) X and Y are complements in production.
C) a decrease in wages would cause a decrease in the quantity supplied at each price.
D) each one unit increase in price causes quantity supplied to increase by 73 units.


A

Economics

You might also like to view...

If a monopolistically competitive firm is producing where MR = MC and price is greater than ATC, the firm is earning a profit.

Answer the following statement true (T) or false (F)

Economics

A discouraged worker is: a. one who opts to quit work to attend college

b. one who opts to quit searching for work after unsuccessfully seeking employment. c. a part-time worker who would like to work more hours. d. none of the above.

Economics

If the demand curve is vertical, the elasticity is

a. 1.0. b. 0.0. c. 0.5. d. infinite.

Economics

A ray through the origin always has a slope of one.

Answer the following statement true (T) or false (F)

Economics