What is Supply equation? |
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| Ans : It is the mathematical expression of the relationship between supply for a commodity and it’s determinants. Since, there is positive relationship between price of the commodity and it’s quantity supply. Simple linear supply equation is presented below:
Sₓ = a + b. Pₓ
Where,
Sₓ = Supply for a commodity
a = autonomous supply
Pₓ = Price of commodity x
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