SUPPLY
SUPPLY
Supply of a commodity refers to different quantities of a commodity which producers are willing to
produce an offer for sale at different prices during a particular period of time.
STOCK
Stock of a commodity refers to the total amount of commodity available with the producer at any
given time .
DIFFERENCES BETWEEN SUPPLY AND STOCK-
Supply Stock
1. Supply of a commodity 1. Stock of a commodity refers
refers to different quantities to the total amount of the
of a commodity which producers commodity available with
are willing to produce and offer the producer at any given
for sale at different prices during time.
a particular period of time .
2. Supply is a flow concept. 2. Stock is not a stable concept.
3. It refers to a period of time. 3. It refers to a point of time.
LAW OF SUPPLY
The law of supply states that other things remaining the same the quantity of any commodity that
produces will be willing to produce an offer for sale rises with a rise in its price and falls with a fall
in its price.
P S
P S
SUPPLY SCHEDULE
A supply schedule is the tabular representation of a supply curve showing various quantities which
produces are willing to produce and sell at various alternative prices during a given period of time.
INDIVIDUAL DEMAND SCHEDULE
An individual supply schedule is the tabular representation of a supply curve which shows various
quantities of a commodity that an individual producer or firm is willing to offer for sale at different
prices of the commodity, during a given period of time ,assuming that factors remain same.
MARKET DEMAND SCHEDULE
A market supply schedule is the tabular representation of a market supply curve which shows
various quantities of the product that all the producers or firms are willing to supply at different
prices during a given period of time, other factors remaining same.
SUPPLY CURVE
A supply curve is a Graphical representation of the supply [Link] shows various quantities of
a commodity which an individual producer is willing to supply at different prices during a given
period of time assuming no change in the other factors.
MOVEMENT ALONG THE SUPPLY CURVE ( change in quantity supplied)
A change in quantity supplied is indicated by a movement along a supply curve an upward
movement along a supply curve is called expansion of supply and a downward movement along a
supply curve is called contraction of supply.
It is also known as Change in quantity supplied.
• Expansion of supply ( Increase in quantity supplied)
Larger quantity of a commodity is supplied at a higher price it is called expansion of supply .
• Contraction of supply ( Decrease in quantity supplied)
when smaller quantity of a commodity is supplied at a lower price it is called contraction of
supply.
DIFFERENCE BETWEEN EXPANSION BETWEEN EXPANSION AND
CONTRACTION OF SUPPLY-
SHIFT OF SUPPLY CURVE ( change in Supply)
When the amount supplied of a commodity increases or decreases because of change
in factors other than the own price of the commodity it is called shift of supply
curve.
It is also known as change in supply.
• RIGHTWARD SHIFT IN SUPPLY CURVE
When the producer are willing to supply a larger quantity of a commodity at the
same price it is indicates a rightward shift in supply curve. It is also known as
increase in supply.
• LEFTWARD SHIFT IN SUPPLY CURVE
when the producers are willing to supply a smaller quantity of a commodity at the
same price it indicates leftward shift in the supply curve. It us also know aa decrease
in supply.
DIFFERENCE BETWEEN EXPANSION AND CONTRACTION OF
SUPPLY-
DIFFERENCE BETWEEN EXPANSION OF SUPPLY AND INCREASE
IN SUPPLY :
Expansion of Supply Increase in Supply
1. Expansion of supply refers 1. Increase in supply
to a larger quantity of refers to more being
commodity being supplied supplied at the same
at higher price. Time.
2. Expansion of supply is due 2. Increase in supply
to a rise in the own price of is due to change in
the commodity. Other factors
affecting supply
3. Expansion of supply will lead 3. Increase in supply
to an upward movement along will shift the entire
the same supply curve. supply curve to the
to the right.
DIFFERENCE BETWEEN CONTRACTION OF SUPPLY AND DECREASE
IN SUPPLY :
1. Contraction of supply refers 1. Decrease in supply
to a smaller quantity of refers to smaller
commodity being supplied amount supplied at the
at lower price. same time.
2. Contraction of supply is due 2. Decreas in supply
to a fall in the own price of is due to change in
the commodity. Other factors
affecting supply
3. Contraction of supply will lead 3. Decrease in supply
to an downward movement along will shift the entire
the same supply curve. supply curve to the
to the left.