Economics
posted by Managerial economics .
The general supply function for new housing in Miami is estimated to be Qs=96+2P10Pl4Pk where P is the price per square foot of new housing in Miami, PL is the average hourly wage rate for construction workerw, and PK is the price of capital (as measured by the average rate of interest paid on loans to home builders). Os is measured in units of 1,000 square feet per month.
Does if make sense for PL and PK to have negative coefficients in the general supply function? Explain why or whay not.
Respond to this Question
Similar Questions

Economics
Consider a monocentric city in which the cost of commuting is $10 per mile per month. A household located eight miles from the city center occupies a dwelling with 1,200 square feet at a monthly rent of $600. Nonland cost per dwelling … 
ECONOMICS  Perfect Competition
Please check and correct my answers. Thank you. 1) Jack Benny can get blood from a stone. If he has x stones, the number of pints of blood he can extract from them is f(x) = 2x^(1/3). Stones cost Jack w dollars each. Jack can sell … 
Economics
2) Earl’s production function is f(x1, x2) = x1^(1/2) * x2^(1/3), where x1 is the number of pounds of lemons he uses and x2 is the number of hours he spends squeezing them. His cost function is c(w1, w2, y) = 2w1^(1/2) * w2^(1/2) … 
Economics
Earl’s production function is f(x1, x2) = x1^(1/2) * x2^(1/3), where x1 is the number of pounds of lemons he uses and x2 is the number of hours he spends squeezing them. His cost function is c(w1, w2, y) = 2w1^(1/2) * w2^(1/2) * … 
Managerial Economics
Given the demand & supply Function for product 'x' at california university have been estimated as: Qd= 5000 4 (price)+ 0.2 (pop) Qs=300 +5 (price)+ 0.5 (wage rate) i) determine the equilibrium price & quantity of product X. ii) … 
Microeconomics
Explain how the supply of new housing interacts with shifts in the demand for owneroccupied housing in your neighbourhood or an area with which you are familiar. In what ways does the mechanism differ from that which exists normally … 
Managerial Economics
The general supply function for new housing in Miami is estimated to be Qs ƒƒnƒ©ƒ¦ƒyƒnƒ¢P ƒ{ƒ¡ƒ~PL ƒ{ƒ¤PK where P is the price per square foot of new housing in Miami, PL is the average hourly wage rate for construction … 
Business
Applegate Industries is planning to expand its production facility in a few years. New plant construction costs are estimated to be $4.50 per square foot. The company invests $850,000 today at 8% interest compounded quarterly. How … 
Math
Jorge's current hourly wage for working at Denti Smiles is $12.00. Jorge was told that at the beginning of next month, his new hourly wage will be an increase of 6% of his current hourly wage. What will be Jorge's new hourly wage? 
Algebra 2
Mario took a 17 day trip around the U.S. He visited Boston, Miami, Philadelphia and New York. In Boston he spent $200 per day, in Miami $225 per day, in Philadelphia $175 per day and in New York he spent $150 a day for a total of $3400. …