# Supply As An Equation

After you have worked through this section of the learning unit, you should be able to:

• write the supply function as an equation

With the information on the previous page, it is now possible to write a supply equation as follows, using symbols:

#### Qs = f(Px, Pc, T, Pg, N, ...)

In words, the above equation means that the quantity supplied of a good or service (Qs) is a function of the price of the good or service (Px), the cost of production (Pc) , technology (T), the price of related goods (Pg), the number of suppliers (N) and other factors. The other factors are things such as the weather and expected price.

### Watch the following video clip about the supply equation:

#### Activity

Do the following activity on the supply equation:

### Given the supply equation, which is the dependent variable?

Qs = f(Px, Pc, T, Pg, N, ...)

The dependent variable is Qs. The other variables (Px, Pc, T, Pg and N) are the independent variables.

### Write down the symbol for the following supply factors:

Cost of production __________
Technology __________
Number of suppliers ___________
Number of other factors ____________

Cost of production: Pc
Technology: T
Number of suppliers: N
Number of other factors: