Experimental studies in agriculture sector for deriving input supply and output demand is usually obtained by producers\' complete efficiency default in goods production. Deriving the mentioned functions could lead to illusory results without considering inefficiency. This article has investigated the effect of economic inefficiency on output supply and dry land wheat input demand. Therefore, different inefficiencies were estimated using Dual Frontier method and provincial data in 2001-2010 period. In the next step, effective factors on economic inefficiency were investigated. Finally, irrigated wheat input supply and demand have been achieved in two scenarios (the first scenario without considering inefficiency and the second scenario with considering inefficiency).Results showed that government policy in cutting pesticides subsidies leads to a decrease in economic efficiency and cutting the subsidies related to seeds and chemical fertilizer increases the efficiency. Moreover, considering inefficiency, farmers\' reactions toward the prices have changed a lot in both supply and demand.

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