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Use the following general linear supply function: Qs= 40 + 6P − 8PI + 10F where...

Use the following general linear supply function:

Qs= 40 + 6P − 8PI + 10F

where Qs is the quantity supplied of the good, P is the price of the good, PI is the price of an input, and F is the number of firms producing the good. Suppose PI = $40, F = 50, and the demand function is Qd= 700 − 6P, then if government sets a price of $50 what will be the result?

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