About this document
Understanding the General Supply Function by Lagop is a document available to read on EtoBox.
The general supply function shows how six variables - price of the good (P), prices of inputs (PI), prices of related goods (Pr), technology (T), producer price expectations (Pe), and number of firms (F) - jointly determine the quantity supplied. A change in any of these variables will cause the supply curve to shift, changing the quantity supplied at each price level. For example, an increase in input prices will decrease quantity supplied as it increases production costs, while an improvement in technolog
- Author
- Lagop
- Language
- EN