00:01
Okay, so we're told that a firm faces a supply function that weighs in the price of steel, which is our actual item under consideration, the income per capita and the price of aluminum are related good.
00:15
We're told that in our initial conditions, the price of steel, our product of interest is equal to a dollar per pound.
00:22
The per capita income is 20 ,000, and the price of aluminum is 80 cents per pound.
00:27
And first we're asked to find, what is the initial? level or quantity supplied with these initial conditions.
00:35
And so this is just going to give us, we just need to plug in our values into the equation.
00:43
So we have 5 ,000 minus 1 ,000 times 1, plus 0 .1 times 20 ,000 plus 100 times 0 .8, which gives us 5 ,000 minus 1 ,000 plus 2 ,000 plus 2 ,000, plus which becomes 6 ,080...