The Theorical detemination of economic durable good Supply

This paper represents a theoretical model from which the supply
function for a durable goods is derived. It turns out that consumer at the
equilibrium condition equates its user cost with the marginal value of
services received by using an additional unit of durable goods. The stock
price is obtained from this condition. In addition, at the equilbrium
condition for producer, the stock price is equal to the marginal production
cost which results the supply function of durable goods. Since the fa ctors
such as interest rates, depreciation rates, Wold of goods and the marginal
value ofservecies determine the stock price, Thus they Life ime affect the
supply function indirectly