Hello there! I assume that in implicit function, independent and dependent variables are not defined properly. But I'm not sure how can I convert the implicit supply function into an explicit linear supply function. Can someone please help?
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Hi Rajana! You got the meaning of implicit function right.
Qs = g(p) is the implicit supply function.
To transfer this into an explicit supply function, we should introduce parameters,
Qs = -c + dp
where c & d are parameters.
the negative sign on c indicates the distribution of free samples.
From the above equation, we can see, when the price increases, the quantity of supply also increases,
when the price decreases quantity of supply also decreases.