4. (20 points) Your job is to analyze the supply of single family homes. The general functional form supply schedule for single family homes is:

Qs = Qs(Price, Price of other goods, Factor Costs (such as wage rates or the price of materials (like lumber)), Technology, Price Expectations, Taxes, Subsidies, the Number of Sellers).

"Sign" the general functional supply schedule, and explain your signs.

Suppose an analysis of the housing market shows that the supply schedule can be written in specific functional form; that is:

Qs = 2 + .5P.

Answer the following questions?

A) What is intercept?

B) What is the economic meaning of the intercept?

C) What is the slope?

D) What is the economic meaning of the slope?

E) Suppose the price changes from $2 to $4, what is the change in quantity supplied?

F) How are the NPDs in the general functional form supply schedule reflected in the specific functional form supply schedule.

G) Suppose the specific functional form supply schedule changes to Qs = 0 + .5P, provide three examples of changes in the NPDs that could explain that change in supply (that shift in the supply schedule).