Market Supply Function

The market supply function for a product is a statement of the relation between the quantity supplied and all factors affecting that quantity. In functional form, a supply function can be expressed as

Quantity of /(Price of X, Prices of Related Goods,

Product X = Q = Current State of Technology, Input Supplied Prices, Weather, and so on)

The generalized supply function expressed in Equation 4.6 lists variables that influence supply. As is true with the demand function, the supply function must be made explicit to be useful for managerial decision making.

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