The supply function for a commodity is given by Q_s = -20 + 5P, where Q_s is the quantity … — JAMB UTME

The supply function for a commodity is given by $Q_s = -20 + 5P$ , where $Q_s$ is the quantity supplied in units and $P$ is the price in Naira ( $\text{N}$ ). What is the quantity supplied when the price per unit is $\text{N}10$ ?

Answer: 30 units

Answer

The quantity supplied when the price is

\text{N}10

is 30 units.

Substituting

P = 10

into the linear supply equation

Q_s = -20 + 5P

gives

Q_s = -20 + 5(10) = 30

units, directly reflecting the positive relationship between price and quantity supplied stated by the law of supply.

Step-by-Step Solution

Substitute the given price into the supply function

Q_s = -20 + 5(10)

The price

P

is specified as 10 Naira in the problem statement.

Perform the multiplication and addition

Q_s = -20 + 50 = 30

Evaluating the linear expression gives the total quantity supplied at price level 10.

Key Concept

Linear Supply Function and Quantity Supplied Calculation

Estimated Time:45s

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