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.

Was this article helpful?

0 0
Your Retirement Planning Guide

Your Retirement Planning Guide

Don't Blame Us If You End Up Enjoying Your Retired Life Like None Of Your Other Retired Friends. Already Freaked-Out About Your Retirement? Not Having Any Idea As To How You Should Be Planning For It? Started To Doubt If Your Later Years Would Really Be As Golden As They Promised? Fret Not Right Guidance Is Just Around The Corner.

Get My Free Ebook

Post a comment