Linear supply functions, equations and graphs (HL)
Supply function: Qs = c + dP
‘C’ causes a shift in the supply curve because c = the quantity supplied when the price is 0, so, if c decreases the curve will shift to the left (non-price factors)
The slope will depend on d (positive because the relation QD=P is) that is the responsiveness of the producer to a change in price. It can depend on the number of factors of production.