Question

Suppose Firm A has a supply curve of Upper Q Subscript Upper A Baseline equals negative 2 plus p and Firm B has a supply curve of Upper Q Subscript Upper B Baseline equals 0.5 p How much is the total supply at a price of ​$5​? Total supply is nothing thousand units ​(enter your response as a real number rounded to one decimal place​).

Answer 1

Answer:

The total supply can be found by adding individual supply functions as follows:

Qa+Qb = Q

Q = -2+p+0.5p

Q= -2+1.5p where p = $44 therefore;

Q= -2+1.5(44)

Q= 64

Total supply at p = $15

Q= -2+15(1.5)

Q= 20.5