Tarjontayhtälöt

Tarjontayhtälöt, or supply equations, are mathematical expressions used in economics to represent the relationship between the quantity of a good or service that producers are willing and able to offer for sale and various factors that influence this willingness and ability. These factors typically include the price of the good itself, the prices of inputs used in production, technology, and the number of sellers in the market. The fundamental principle behind a supply equation is that, all else being equal, a higher price for a good will generally incentivize producers to supply a larger quantity.

A typical supply equation can be expressed in a functional form as Qs = f(P, Pi, T, N), where Qs is the quantity supplied, P is the price of the good, Pi represents the prices of inputs, T signifies the level of technology, and N denotes the number of firms. Often, for simplicity in analysis, a linear supply equation is used, such as Qs = a + bP, where 'a' is a constant representing the quantity supplied at zero price (though this may not be economically meaningful) and 'b' is the coefficient indicating how much the quantity supplied changes in response to a one-unit change in price. The coefficient 'b' is typically positive, reflecting the law of supply. Changes in other factors (Pi, T, N) lead to shifts in the entire supply curve, while movements along the curve are caused by changes in the price of the good itself.