Scribd
Upload
23 views2 pages

Ambot:' : Applied Economics Supply Force Supply - P F (QS)

Uploaded by

cali k

The document discusses the economic concept of supply. It defines supply as the quantity of a good or service offered for sale during a given period of time. Six key variables that influence supply are identified: price of the good, input prices, prices of related goods, technological advances, expected future price, and number of firms producing the product. A general supply function is defined relating quantity supplied to these six variables. The relationship between each variable and quantity supplied is characterized by slope parameters. The document also distinguishes between changes in quantity supplied, which occur when price changes, and changes in supply, which occur when other determinants of supply change.

Copyright:

© All Rights Reserved
Download as DOCX, PDF, TXT or read online from Scribd
Download as docx, pdf, or txt

Ambot:' : Applied Economics Supply Force Supply - P F (QS)

Uploaded by

cali k
23 views2 pages
The document discusses the economic concept of supply. It defines supply as the quantity of a good or service offered for sale during a given period of time. Six key variables that influence supply are identified: price of the good, input prices, prices of related goods, technological advances, expected future price, and number of firms producing the product. A general supply function is defined relating quantity supplied to these six variables. The relationship between each variable and quantity supplied is characterized by slope parameters. The document also distinguishes between changes in quantity supplied, which occur when price changes, and changes in supply, which occur when other determinants of supply change.

Original Title

Untitled

Copyright

© © All Rights Reserved

Available Formats

DOCX, PDF, TXT or read online from Scribd

Did you find this document useful?

Is this content inappropriate?

The document discusses the economic concept of supply. It defines supply as the quantity of a good or service offered for sale during a given period of time. Six key variables that influence supply are identified: price of the good, input prices, prices of related goods, technological advances, expected future price, and number of firms producing the product. A general supply function is defined relating quantity supplied to these six variables. The relationship between each variable and quantity supplied is characterized by slope parameters. The document also distinguishes between changes in quantity supplied, which occur when price changes, and changes in supply, which occur when other determinants of supply change.

Copyright:

© All Rights Reserved
Download as DOCX, PDF, TXT or read online from Scribd
Download as docx, pdf, or txt
23 views2 pages

Ambot:' : Applied Economics Supply Force Supply - P F (QS)

Uploaded by

cali k
The document discusses the economic concept of supply. It defines supply as the quantity of a good or service offered for sale during a given period of time. Six key variables that influence supply are identified: price of the good, input prices, prices of related goods, technological advances, expected future price, and number of firms producing the product. A general supply function is defined relating quantity supplied to these six variables. The relationship between each variable and quantity supplied is characterized by slope parameters. The document also distinguishes between changes in quantity supplied, which occur when price changes, and changes in supply, which occur when other determinants of supply change.

Copyright:

© All Rights Reserved
Download as DOCX, PDF, TXT or read online from Scribd
Download as docx, pdf, or txt
You are on page 1/ 2

ambot:’>

APPLIED ECONOMICS - P = f(Qs)

SUPPLY FORCE

Supply

~Quantity supplied (Qs)


- amount of a good or service offered for sale during
a given period of time

~Six variables that influence Qs

- Price of good or service (P)


- Input prices (PI )
- Prices of goods related to production (Pr)
- Technological advances (T)
- Expected future price of the product (Pe) ~Graphing Supply Curves
- Number of firms producing the product (F) - point on a direct supply curve shows either:

~General supply function o maximum amount of a good that will be


offered for sale at a given price
- Qs = f (P, PI, Pr, T, Pe, F)
- Qs = h + kP + lPI + mPr + nT + rPe + sF o minimum price necessary to induce
producers to voluntarily offer a particular
~k, l, m, n, r, & s are slope parameters quantity for sale

- measure the effect on Qs of changing one of the


- variables while holding the others constant

~Sign of parameter shows how a variable is related to Qs

- Positive sign indicates direct relationship


- Negative sign indicates inverse relationship

~General Supply Function

- Change in quantity supplied

o occurs when price changes


o movement along the supply curve

- Change in supply

o occurs when one of the other variables, or


determinants of supply, changes

o supply curve shifts rightward or leftward

~Direct Supply Function


- The direct supply function, or simply supply,
shows how quantity supplied, Qs, is related to
product price, P, when all other variables are held
constant.
- Qs = f(P)

~Inverse Supply Function


- price (P) is plotted on the vertical axis & quantity
supplied (Qs) is plotted on the horizontal axis
ambot:’>
SEATWORKS

You might also like