# Question: please assist with following q2 consider the general supply function...

###### Question details

Please assist with following:

Q2. Consider the general supply function:

Q_{s} = 1,000
+ 20 P - 9 P_{I} +25 F

where
*Q _{s}*= quantity supplied,

*P*= price of the commodity,

*P*= price of a key input in the production process, and

_{I}*F =*number of firms producing the commodity.

a. Interpret the slope
parameters on *P, P _{I},* and

*F. (1 point)*

b. Derive the equation
for the supply function when *P _{I}*= $480 and

*F*= 60.

*(1 point)*

c. Sketch a graph of
the supply function in part *b.* At what price does the
supply curve intersect the price axis? Give an interpretation of
the price intercept of this supply curve. (1point)

d. Using the supply
function from part *b,* calculate the quantity supplied when
the price of the commodity is $1,000 and $1,500.(1 point)

e. Derive the inverse
of the supply function in part *b.* Using the inverse supply
function, calculate the supply price for 40,000 units of the
commodity. Give an interpretation of this supply price. (1
point)

f. Suppose the supply curve for good X passes through the point P = $35, Qs = 2,500. Give two interpretations of this point on the supply curve. (2.5 point)