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SUPPLY, Supply refers to the quantity of a commodity, offered for sale at a given price in a given market at a, given time., Supply and Stock, Supply refers to the quantity of commodity offered for, sale where as stock is the excess of commodity in the, market(kept not for sale) over the quantity of, commodity offered for sale., 1.Supply is a part of stock, 2.Stock is always more than supply., ©[email protected], , 2

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SUPPLY FUNCTION, Supply Function shows the functional relationship, between Quantity Supplied of a commodity and its, various determinants., Qs = f (Px, Po, Fp, T & G), Where, Px is the price of the commodity, Po is the price of other commodities, Fp is the price of factors of production,, T is the technique of production, G is the goal of the Producer., ©[email protected], , 3

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SUPPLY SCHEDULE, A supply schedule is a tabular statement that shows a, full account of supply of a particular Commodity at, different prices at certain time in a specific market., , PRICE, , QUANTITY SUPPLIED, , 5, 6, 7, 8, 9, 10, , 50, 60, 70, 80, 90, 100, ©[email protected], , 4

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SUPPLY CURVE, , 120, , 100, , 100, 90, 80, , QUANTITY SUPPLIED, , 80, 70, 60, , 60, 50, , 40, , 20, , 0, , 0, , 1, , 2, , 3PRICE, , 4, , ©[email protected], , 5, , 6, , 7, 5

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LAW OF SUPPLY, Law of supply establishes the relationship between, price and quantity of goods supplied., According to this Law, “other things being the same,, when the price of the commodity increases the, quantity supplied rises and when the price of the, commodity falls, the quantity supplied falls.”, It means that the price and quantity supplied move in, the same direction. i.e. They are positively / directly, related., ©[email protected], , 6

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MOVEMENT ALONG A SUPPLY CURVE, Extension and Contraction Of Supply, When the quantity supplied increases with the rise, in price, it is called Extension Of Supply., , When the quantity supplied falls with the fall in, price, it is called Contraction Of Supply., , ©[email protected], , 8

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SHIFT OF SUPPLY CURVE, INCREASE OR DECREASE OF SUPPLY, If more quantity of a supplied at the same price, due to, favourable change in factors other than price of the, commodity in question It is called increase in Supply., If less quantity of a supplied at the same price, due to, Unfavourable change in factors other than price of the, commodity in question It is called decrease in Supply., ©[email protected], , 10

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PRICE ELASTICITY OF SUPPLY, √ Elasticity of Supply is the technical term used by, the, , Economists, , to, , describe, , the, , degree, , of, , responsiveness of quantity supplied of a commodity in, response to change in price of that commodity., , √ In other words, Elasticity of Supply is the ratio, between proportionate change in quantity supplied, and proportionate change in price., ©[email protected], , 12

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ELASTIC SUPPLY, Elastic supply refers to that situation where, proportionate change in quantity supplied is greater, than proportionate change in its price., , ©[email protected], , 14

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INELASTIC SUPPLY, Inelastic supply refers to that situation where, proportionate change in quantity supplied is less than, proportionate change in its price., , ©[email protected], , 15

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UNIT ELASTIC SUPPLY, Unit Elastic supply refers to that situation where, proportionate change in quantity supplied is equal to, proportionate change in its price., , ©[email protected], , 16

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FACTORS DETERMINING THE, ELASTICITY OF SUPPLY, THE NATURE OF COMMODITY: Perishable, goods are less elastic in Supply whereas durable goods, are Elastic in Supply, PERIOD: In short run the supply is in elastic. and in, the long period supply is elastic., SCALE OF PRODUCTION: In the case of small, scale of production, the Supply is inelastic whereas in the, case of large scale of production,, the supply is elastic. 17, ©[email protected]