The main determinants of supply of a commodity are:
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.SUBMIT ASSIGNMENT NOW!