Supply — Flashcards

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Supply of a commodity is the quantity of the commodity that a seller offers for sale at a given price at a given time. It always includes three elements: quantity, price, and time period.

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A commodity may be available in the market, but that does not mean it has been supplied. Supply means the seller is ready to offer it for sale at a given price during a given time period. Availability…

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The three elements are: 1) quantity of the commodity, 2) price of the commodity, and 3) time period during which it is offered for sale.

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The production unit in which production of a commodity takes place is called a firm. Farmers, manufacturers, and sellers are all producers who supply commodities in the market.

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Farmers, manufacturers, and sellers supply commodities in the market. They are all called producers because they produce the goods or bring them to buyers through sale.

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Stock is the total quantity of a commodity available with a seller or firm at a particular point of time. It is a point-in-time measure, not a flow.

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Stock is the total quantity available at a particular point of time, while supply is that part of stock that the seller is ready to sell at a given price during a given period of time. Stock is measur…

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The merchant had 820 quintals of rice as stock on 1st August 2011. During August, the merchant supplied 300 quintals of rice at Rs.2300 per quintal. This shows stock at a point of time and supply over…