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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5.
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