1.

What is supply function?

Answer»

The relationship between the quantities supplied and the determinants of supply is called supply function. It may be written as follows:

S = f(x1, x2, x3………..xn) or S = f(P, T, Gp, Fc……..) where S is quantities supplied, P is price, T is technology, Gp is Government policy, Fc is cost of factors of production. Generally Supply Function is S = f(p).



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