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The seller of the product represents the supply side of the commodity. This may include firms, governments, or even individual producers. The terms ‘supply’ and ‘quantity supplied’ are interrelated concepts in economics. This content attempts to explain the difference between supply and quantity supplied. Contents: Supply Vs Quantity Supplied
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Definition of SupplySupply refers to the whole schedule of quantities of the commodity which seller offers for sale, at all possible prices. These prices are already given for the day, week or month while other factors remain constant.
Noting that the actual sale of that commodity is not the same as its supply. It includes:
What are the three ways to express supply? The three ways to express the supply of commodity by the firm or market are: Supply function: It is an algebraic expression that states the individual supplier’s behaviour. This reflects what the supplier firm offers in the market at the given price. Supply schedule: Supply curve: Also Read: Difference Between Demand and Quantity Demanded Definition of Quantity SuppliedQuantity Supplied refers to the total quantity of a good which the supplier decides to produce and sell in the given circumstances.
In general, the supply of a commodity varies directly in relation to its price. This means that at higher prices the firm supplies more quantity of a commodity and vice versa. Example With the help of this supply schedule, we will plot the supply curve A functional relationship exists between the quantity supplied and the price of a commodity. Plus, it displays:
Also Read: Difference Between Movement and Shift in Demand Curve Below we will discuss the differences between supply and quantity supplied:
Law of SupplyIt states that the producer will produce and offer more quantity of a commodity as the price of that product or service increases. However, other determinants are constant. Consequently, the change in the price of the commodity is the cause. And its effect can be seen in the change in the supply of that commodity. Also, high prices encourage a firm to produce or sell more.
Change in Supply and Change in Quantity SuppliedNon-price factors determine the supply curve’s location. This location refers to the distance from the point of origin. However, price of the commodity determines the slope of the curve. Hence, supply changes in two circumstances: Movement along the supply curve When there is an increase in the supply of the commodity due to the increase in its price. This concludes that there is an increase in the quantity supplied. So it leads to the movement towards the upward direction on the supply curve and in the right. When there is a rise in the market price this results in an expansion of supply. But when there is a fall in the market price of the commodity, this results in contraction of supply. This discourages the producers to offer products for sale in the market. Movement from one supply curve to anotherAlso known as a shift in the position of the entire supply curve. When there is a change in the supply of the commodity but there is no change in its price. This depicts that the supplier shift from one supply curve to another. Such a movement is the increase in supply. In this, the producer moves towards the right in the outer supply curve. In contrast, when the movement is towards the left in the inner supply curve, it portrays the ‘reduction’ in supply. An increase in supply depicts the bodily shift of the supply curve towards the right. This takes place due to the change in non-price determinants. In this situation, producers offer more quantity of the product at the same price. A decrease in supply portrays the bodily shift in the curve towards the left. This happens because of the change in non-price factors. And in this situation, less quantity of the commodity is offered for sale, at the given price. Also Read: Difference Between Demand and Supply Determinants of SupplyThe determinants of supply are discussed as under:
ConclusionThe supply of a commodity depends on other factors also. These factors are natural factors, man-made factors, infrastructural facilities and firm goals. What refers to the amount of a product offered for sale at all possible prices in a market?Supply is the amount of a product that would be offered for sale at all possible prices in the market.
Is the amount that producers bring to market at any given price?When economists talk about supply, they mean the amount of some good or service a producer is willing to supply at each price. Price is what the producer receives for selling one unit of a good or service.
Is the amount of a product a producer or seller would be willing to offer for sale at all possible prices in a market at a given point of time?Supply-a schedule or a curve showing the amounts of a product a producer is willing and able to produce and make available for sale at each of a series of possible prices during a specific period of time.
What refers to the total number of units that are purchased at that price?The total number of units purchased at that price is called the quantity demanded. An increase in the price of a good or service almost always decreases the quantity demanded of that good or service. Conversely, a decrease in price will increase the quantity demanded.
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