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:

**Q**_{s} = f(P_{x}, P_{c}, T, P_{g}, N, ...)

_{s}= f(P

_{x}, P

_{c}, T, P

_{g}, N, ...)

In words, the above equation means that the quantity supplied of a good or service (Q_{s}) is a function of the price of the good or service (P_{x}), the cost of production (P_{c}) , technology (T), the price of related goods (P_{g}), 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?

**Q _{s} = f(P_{x}, P_{c}, T, P_{g}, N, ...)**

The dependent variable is Qs. The other variables (P_{x}, P_{c}, T, P_{g} 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: **…**