## Linear supply functions - example (HL Only)

Letīs Do Some Economics

Assume a linear supply function of the form:

**Qs = -30 + 10P**

Using this supply function, answer the following questions. Once you have had a go at the questions, follow the link below to compare your answers.

- Calculate the quantity supplied for prices from $4 - $15.
- Plot these figures to give the supply curve for the product.
- If the supply function changes to Qs = -30 + 12P, draw up a new table to show the change in quantity supplied for prices from $4 - $15.
- Plot the new supply curve.
- If the supply function now changes to Qs = -50 + 12P, draw up a new table to show the change in the values for quantity supplied for prices from $4 - $15.
- Plot this new supply curve.
- Explain two reasons for:
- the change in the supply function from Qs = -30 + 10P to Qs = -30 + 12P
- the change in the supply function from Qs = -30 + 12P to Qs = -50 + 12P