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 ).

Question

Business

Hunter Ellis

27 August, 18:40

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 ).

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Erik · Answer 1

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