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Qsx=−175+250Px−5W

Notice that this supply function says that for every increase in price of $1, this seller would be willing to supply an additional 250 units of the good. Additionally, for every$1 increase in wage rate that it must pay its laborers, this seller would experience an increase in marginal cost and would be willing to supply five fewer units of the good.

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3.3. The Supply Function and the Supply Curve
unctions, although that is not to say that all demand and supply functions are necessarily linear. One hypothetical example of an individual seller’s supply function for gasoline is given in Equation 8: Equation (8)  <span>Qsx=−175+250Px−5W Notice that this supply function says that for every increase in price of $1, this seller would be willing to supply an additional 250 units of the good. Additionally, for every$1 increase in wage rate that it must pay its laborers, this seller would experience an increase in marginal cost and would be willing to supply five fewer units of the good. We might be interested in the relationship between only two of these variables, price and quantity supplied. Just as we did in the case of the demand function, we use the a