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In its most basic form, a linear supply function looks as follows: y = MX + b. In this case, x and y represent the independent and dependent variables. Meanwhile, m shows the slope of the function, and b represents its y-intersect (i.e., the point where the function intersects the y-axis).
In its most basic form, a linear supply function looks as follows: y = MX + b. In this case, x and y represent the independent and dependent variables. Meanwhile, m shows the slope of the function, and b represents its y-intersect (i.e., the point where the function intersects the y-axis).
3:23 5:27 Suggested clip Finding Equilibrium using Linear Demand and Supply Equations YouTubeStart of suggested client of suggested clip Finding Equilibrium using Linear Demand and Supply Equations
The Supply Curve Equation The convention is for the supply curve to be written as quantity supplied as a function of price. The inverse supply curve, on the other hand, is the price as a function of quantity supplied. The point on the price axis is where the quantity demanded equals zero, or where 0=-3+(3/2)P.
Supply Function. The supply function is the mathematical expression of the relationship between supply and those factors that affect the willingness and ability of a supplier to offer goods for sale. SO = Supply of goods. PX = Price. PF = Factor input employed (used) for production.
Supply Function. Law of supply states that when the price of a commodity increases its supply also increases. Similarly, when the price of a commodity decreases its supply also decreases. Hence, there is a direct relationship between price and supply of a commodity.
In economics, supply is the amount of a resource that firms, producers, laborers, providers of financial assets, or other economic agents are willing and able to provide to the marketplace or directly to another agent in the marketplace.
The market supply curve is obtained by adding together the individual supply curves of all firms in an economy. As the price increases, the quantity supplied by every firm increases, so market supply is upward sloping. A perfectly competitive market is in equilibrium at the price where demand equals supply.
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