Supply Function

 Supply Function
  

Supply function is defined as a functional relationship between quantity supply of a commodity and its various determinants like price of the commodity, price of other goods, price of factors of production, etc.

Thus, 

Qs= f(P, Po, Pf, G,.... ) 
where,

P= Price of goods,

Po= Price of other goods,
Pf = Price of factors of production,
 G= Goal of the firm.

The above function is called multi-variable supply functions because there is a more than one determinants. For simplicity, in our study, it is reduced to single variable supply function as:
Q=f(P),
keeping other determinants same.

Chapter 2 Part 14