CONCEPTS OF SUPPLY

There are two concepts of supply

1) Individual supply
2) Market supply

 Meaning
1) Individual supply : Individual supply refers to various
quantities of a commodity that a producer is willing
to sell at various prices, during a given period of time.

2) Market supply : Market supply refers to different

quantities of commodity which all producers are
prepared to sell at different prices at a given period
of time.
 Individual Supply schedule Market Supply Schedule
1. Individual supply schedule refers to 1. Market supply schedule refers to a
a tabular representation showing tabular representation showing
various quantities of a commodity that different quantities of commodity
a producer is willing to sell at different which all producers are prepared to
prices at a given period of time. sell at different prices at a given period
of time.
2. Price of a commodity Supply of a 2. Price of Quantity supplied Market
x (in Rs per kgs.) commodity commodity (in kgs.) supply
x (in kgs.) (in Rs ) Seller Seller Seller (in kgs.)
A B C (A+B+C)
10 100
10 100 200 300 600
20 200
20 200 300 400 900
30 300 30 300 400 500 1200
40 400 40 400 500 600 1500

50 500 50 500 600 700 1800

3. It is a narrow concept. 3. It is a broad concept.

 Individual Supply Curve Market Supply Curve

1) Individual supply curve is a graphical 1) Market supply curve is a graphical

presentation of individual supply presentation of market supply
schedule. schedule.

Y S Y
S
50 50

40 40

Price
30 30
Price

20 20

10 S 10 S

0 300 600 900 1200 1500 1800

X
0 100 200 300 400 500
X
Quantity Supplied in Kgs Quantity Supplied in kgs

3)It is based on the individualsupply schedule. 3) It is based on the market supplyschedule.

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