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 workers, and PK is the price of capital (as measured by the average rate of interest paid on loans to home builders). Qs is measured in units of 1,000 square feet per month.
The general supply function for new housing in Miami is represented by the equation:
Qs = ƒƒnƒ©ƒ¦ƒyƒnƒ¢P ƒ{ƒ¡ƒ~PL ƒ{ƒ¤PK
Where:
Qs = Quantity supplied of new housing in Miami (measured in units of 1,000 square feet per month)
P = Price per square foot of new housing in Miami
PL = Average hourly wage rate for construction workers
PK = Price of capital (measured by the average rate of interest paid on loans to home builders)
To estimate the supply of new housing in Miami, we need to have values for P, PL, and PK. Once we have these values, we can plug them into the equation to calculate the quantity supplied (Qs) of new housing.
Let's say:
P = $200 per square foot
PL = $25 per hour
PK = 5% (0.05)
Now we can substitute these values into the equation to calculate the quantity supplied (Qs):
Qs = ƒƒnƒ©ƒ¦ƒyƒnƒ¢P ƒ{ƒ¡ƒ~PL ƒ{ƒ¤PK
Qs = ƒƒnƒ©ƒ¦ƒyƒnƒ¢($200) ƒ{ƒ¡ƒ~($25) ƒ{ƒ¤(0.05)
By multiplying and calculating, we can get the estimated quantity supplied of new housing in Miami. Keep in mind that this is just an example, and the actual values may vary based on the specific conditions and variables in Miami's housing market.