Question
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.
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.