5.Given the following general linear supply function: Q, = 40+6P-8P, +10F where Q̟ is the quantity supplied of the good, P is the price of the good, P, is the price of an input, and F is the number of firms producing the good. A decrease in Pı, would result in: a. A leftward shift in the supply curve and a resulting increase in price and quantity. b. A rightward shift in the supply curve and a resulting decrease in price and increase in quantity. c. A leftward shift in the supply curve and a resulting increase in price and decrease in quantity. d. A rightward shift in the supply curve and a decrease in both price and quantity. e. None of the above.

5.Given the following general linear supply function: Q, = 40+6P-8P, +10F where Q̟ is the quantity supplied of the good, P is the price of the good, P, is the price of an input, and F is the number of firms producing the good. A decrease in Pı, would result in: a. A leftward shift in the supply curve and a resulting increase in price and quantity. b. A rightward shift in the supply curve and a resulting decrease in price and increase in quantity. c. A leftward shift in the supply curve and a resulting increase in price and decrease in quantity. d. A rightward shift in the supply curve and a decrease in both price and quantity. e. None of the above.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 20P

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QUESTION 11 The number of seats available in an arena is fixed at 20,000. The equilibrium price for a ticket to a basketball game at the arena is $75. The equilibrium price for a ticket to the circus at the arena is $25. Which of the following is true? O The demand for each basketball game must be more than the demand for each circus performance. O Basketball games must be more expensive to produce than a circus performance. O The supply of circus performances must be less elastic than the supply of basketball games. O The demand for each circus performance must be greater than the demand for each basketball game.
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please prove your answer