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Question 424121: example problems of supply function
Answer by MathLover1(20849)   (Show Source):
You can put this solution on YOUR website!
Supply Function indicates the relationship between the  of the
commodity supplied and the   of the commodity.
The  of a supply curve is   , as price
increases, quantity supplied increases and vice-versa.
The  of the supply curve (0,b) represents the 
 at which an item will be supplied.
Normally, we put the good’s own price and cost into the supply function.
For the previous example that we use,
Qs=g(p, wage, capital cost)
When p increases, firms/producers want to produce more goods because it will provide them with more profit. When cost increase, produce would like to reduce their supply given same capital constraint.
So,
P increases ...=>... Quantity supplied increases along the supply curve.
Wage increases (cost increases) -=>-- supply curve shift to the left for same price.
An example of supply function:
Qs=178+40p-20w-60r
where  of labor,  for producer’s loan
When  and 
=
Suppose  , then
=
So when   , supply curve  to the  , which means that for a given price, producers will supply  goods than before.
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