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Meaning of Supply
In simple words, supply is an amount of
goods and services which a seller is willing
to sale at a given time period at a given
price, other things remaining same. The
term supply includes –
• Stock for sale
• Readiness/willingness to sale
• Given amount/quantity of goods and
services
• Given price
Given time period
Definition
• Thomas - “The supply of goods is the
quantity offered for sale in a given
market at a given time at various
prices.”
• Anatol Murad, “The quantity
supplied refers to the quantity of a
commodity offered for sale at a
given price in a given market at a
given time.”
•
SUPPLY SCHEDULE
Individual Supply Schedule
Price ( Rs.) Q.S. (Units)
1 10
2 20
3 30
4 40
5 50
Market Supply
Schedule
Price (Rs) Firm A Firm B Market Supply
1 10 5 15
2 20 10 30
3 30 20 50
4 40 30 70
5 50 40 90
SUPPLY CURVE
• Individual Supply Curve
• Market Supply Curve
Law of Supply
In Law of Supply, the relation between
price and supply of a commodity is
studied, whereas other factors remain
constant. There is a positive relation
between price and quantity supplied.
Qs =f (P)
• Dooley - “The Law of Supply states that,
other things being equal, the higher the
price, the greater the quantity supplied or
the lower the price, the smaller the quantity
supplied.”
Assumptions: