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Supply Locus: A Note on the Supply Decisions of Monopolistic Firms

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  • John Roufagalas

Abstract

This note introduces the concept of the supply locus to describe the systematic supply responses of monopolistic firms to changes in demand. While in general the supply locus is not unique, it is shown that it is unique in the empirically interesting cases of a) a linear demand that shifts in a parallel fashion, and b) a constant elasticity exponential demand that shifts in a way that preserves its elasticity.

Suggested Citation

  • John Roufagalas, 2015. "Supply Locus: A Note on the Supply Decisions of Monopolistic Firms," Journal for Economic Educators, Middle Tennessee State University, Business and Economic Research Center, vol. 15(1), pages 13-18, Fall.
    • Handle: RePEc:mts:jrnlee:v:15:y:2015:i:1:p:13-18
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    File URL: http://capone.mtsu.edu/jee/2015/pp13-18MS914.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    supply locus; monopolistic competition; monopoly;
    All these keywords.

    JEL classification:

    • A22 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Undergraduate
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General

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