WHAT IS SUPPLY? Difference between STOCK and Supply.
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- Опубликовано: 21 авг 2024
- Supply refers to the amount of good offered for sale in the market at a given price.
Supply is defined as the quantities of a commodity that a seller wants to and is able to sell at the prevailing market prices over a specific period of time.
Supply does not mean the total stock of a commodity. It only includes a portion of goods that is brought to the market by its producers for selling and distribution. Therefore, supply should be distinguished from stock.
Stock is the amount of good which is available with producers and can be brought into the market for sale and is the excess of goods present in the market over the goods supplied.
While supply is obtained from stock, the stock is the result of production. In other words, the total quantity of finished goods present with the seller is stock whereas that part of the stock that is offered for sale is a supply.
Stock is the quantity of goods supplied for sale and the quantity of a commodity stored, However, all that is produced by the producers, is not offered for sale in the market as a definite part is stored in the warehouses and released when the prices are favorable.
Hence, stock is that quantity of the commodity which is present in the market and can be supplied for sale in short notice.
Stock = Unsold goods + Current Production - Current Sales
This means that supply does not mean the complete stock of commodity, rather it includes only that portion of goods that is brought to the market by the producers, for the purpose of selling and distribution.
Therefore supply is Qs = x + P,
Qs represents the number of units supplied or total supply, x represents the quantity and P represents the price
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