Supply analysis has traditionally ignored technology as a major determinant of supply. Consider the traditional 'Nerlovian' supply response model as represented by equations (1)-(3):

Desired acreage planted to crop i in period t is specified to be a function of relative prices of crop i, Pt, and other infrastructural variables, Zt, in equation

Costs of adjustment, however, prevent farmers from fully moving from last period's acreage to desired acreage in year t. Equation (2) states that the fraction p of the change will be made in each period. If equation (1) is a linear function:

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