Economics · Supply Function

In the linear supply function expressed as Qs = -c + dP, which of the following statements accurately describes the role of the positive coefficient 'd'?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1It determines the exact market-clearing price level.
2It establishes the direct relationship between the price of the commodity and the quantity supplied.✓
3It accounts for non-price determinants that shift the supply curve.
4It represents the total physical stock of the commodity held back from the market.

Correct answer

It establishes the direct relationship between the price of the commodity and the quantity supplied.

Save this question and verified answer as a clean study sheet with live clickable link.

👥

Challenge your peer aspirants on WhatsApp or Telegram to solve this question!

Online Test Series

Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.

Chapter Practice

Want more practice questions on Supply Function?

Solve complete topic-wise tests with detailed solutions on GkGet.

Recommended practice questions in Economics · Supply Function

The Dandi March, also known as the Salt Satyagraha, was led by which influential leader?

Which act formally granted independence to India, marking the end of British rule?

Who was the key figure in establishing the Indian National Congress?

Related Practice Questions