Concept of supply

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SHUBHA SHUKLAPGT ECONOMICSKENDRIYA VIDYALAYAMANKAPUR GONDA U. P.04/20/23 1SHUBHA SHUKLA PGT ECONOMICS

Meaning of supplySupply refers to the quantity of a

commodity that a firm is willing and able to sale at given price and at particular period of time.

It include following things:-1.Quantity of commodity2.Willingness to sale3.Price of the commodity4.Period of time 04/20/23 2SHUBHA SHUKLA PGT ECONOMICS

DIFFERENCE BETWEEN STOCK AND SUPPLY

STOCK SUPPLY1. It refers the total quantity of a commodity that is available with the firm at particular time.

1. It to the quantity of a commodity that a firm is willing and able to sale at given price and at particular period of time.

2. It refers point of time. 2. It refers period of time.

3. It is stable concept. 3. It is flow concept.

4.Stock can never be less then supply.

4. Supply is the part of stock.

5. For example: a seller has 50 kg sugar in his godown. It is stock.

5. He is ready to sale 30 kg only. It is supply.

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Supply function or

determinants of supplySupply function refers the functional relationship between supply of a commodity and factors affecting to its supply.

Supply function has two types:1. individual supply function2. market supply function

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Individual supply function It refers the functional relationship between

quantity supply and factors affecting to the supply of a commodity.

Sx= f (Px, Po, Pf, St, T, G)Sx= f (Px, Po, Pf, St, T, G)o Sx- supply of X commodityo Px- price of X commodityo Po- price of other commodityo Pf- price of factor inputo St- state of technologyo T- taxation policyo G- goals of firm

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market supply functionIt refers the functional relationship

between quantity supply and factors affecting to the market supply of a commodity.

Sx= f (Px, Po, Pf, St, T, G, N, F, Sx= f (Px, Po, Pf, St, T, G, N, F, M)M)

oN- number of firmsoF- future expectationoM- means of transport and

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