1. The X-Corporation produces a good (X) with input (W). The supply function is: Qxs = 100 + 1.5Px - 0.4Pw

A. If the current input price for W is $500, derive the supply and inverse supply curves.

B. Graph the supply curve (remember, when asked to graph the supply curve, you will actually graph the inverse supply curve).

C. What quantity of X will be supplied if the price of X is $1,500? Plot and label this combination on the graph.

D. Suppose there is a 10% increase in the input W. What will happen to:

Supply______, Quantity Supplied_______, and Price (when referencing price, we mean the price of the good produced (X).

E. Derive the supply curve with the new input price and place it on the graph. What quantity will the firm produce given the new input price? Plot this on your graph. Does this confirm your answers to part d?