Suppose the supply curve for wool mittens is represented as: Q = 50 + 1/2X - 5Y - 24Z. Which one of the following statements below is true? A. The variable Y could be the price that wool mittens sell for in the market. B. The variable X could be the price of the wool used to make mittens. C. The variable Y could be the price of the wool used to make mittens. D. The variable X could be consumers income.

Question

Business

Mariela Ewing

3 February, 13:41

Suppose the supply curve for wool mittens is represented as: Q = 50 + 1/2X - 5Y - 24Z. Which one of the following statements below is true? A. The variable Y could be the price that wool mittens sell for in the market. B. The variable X could be the price of the wool used to make mittens. C. The variable Y could be the price of the wool used to make mittens. D. The variable X could be consumers income.

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Answers (1)

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Claire Hurst · Answer 1

C) The variable Y could be the price of the wool used to make mittens.

D) The variable X could be consumers income.

Explanation:

quantity supplied = 50 + 1/2X - 5Y - 24Z

In this equation if X increases, then the quantity supplied increases. Therefore X can either be the product's price or consumer income.

In this equation if Y or Z increase, then the quantity supplied decreases. Therefore Y or Z are production costs, either labor or materials.