Supply Function

Supply Function Assignment Help

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Supply Function

The main determinants of supply of a commodity are:

  • The price of the product;
  • The price of inputs;
  • The state of technology;
  • Natural factors.

These factors can be summarized in the supply function

Qsx = f (Px , PL , PK, T)

Where Qsx is the quantity supplied of a commodity X, Px is the price of X, PL and PK are the prices of labour and capital respectively which represent input prices and T is the state of technology. The function f shows the quantitative relationship between variables on the left hand and right hand side.


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