The supply function

  • describes how much of good X will be produced at an alternative price of good X, given all the other variables being constant.
  • recognizes that the quantity of a good produced depends on its price and supply shifters.
  • shows the relationship between the quantity supplied of X and variables other than its price.
  • does not include technology.

Note/Explanation

The supply function recognizes that the quantity of a good produced depends on its price and supply shifters.

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