Question: Need help understanding the following, specifically ( b ) and ( c ) . Consider the following cost function: c ( w 1 , w

Need help understanding the following, specifically (b) and (c).
Consider the following cost function: c(w1,w2,y)=w114w234y2.
(a) Find the marginal cost function, the average cost function, the supply function, and the
demand function for input 1.
(b) Sketch the supply curve and the demand curve for input 1.
(c) What is the effect of an increase in the price of input 2 on the supply curve and the
demand curve for input 1? Illustrate your answers.
Solution: (excluding graphs)
MC=delcdely=2w114w234y
AC=cy=w114w234y2y=w114w234y
Supply: p=MC=>p=2w114w234y
To get demand for input 1, use Shephard's lemma:
x1=cw1(w,y)=14w1-34w234y2
Need help understanding the following,

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