Supply | Business Economics & Finance - B Com PDF Download

 Page 1


Law of Supply
Page 2


Law of Supply
What is supply?
‘ S up pl y refers to the quantity of a commodity
which producers or sellers are willing to
produce and offer for sale at a particular
pri ce ’, in a given market, at a particular period
of time
Page 3


Law of Supply
What is supply?
‘ S up pl y refers to the quantity of a commodity
which producers or sellers are willing to
produce and offer for sale at a particular
pri ce ’, in a given market, at a particular period
of time
The three important aspects of  
supply ar e….
• Supply is a desired quantity
• Supply is always explained with  reference to
price
• Time during which it is offered for sale
Page 4


Law of Supply
What is supply?
‘ S up pl y refers to the quantity of a commodity
which producers or sellers are willing to
produce and offer for sale at a particular
pri ce ’, in a given market, at a particular period
of time
The three important aspects of  
supply ar e….
• Supply is a desired quantity
• Supply is always explained with  reference to
price
• Time during which it is offered for sale
Supply Schedule and Supply Curve
Supply schedule shows a tabular representation of law of
supply. It presents the different quantities of a product that a
seller is willing to sell at different price levels of that product.
The graphical representation of supply schedule is called
supply curve.
Supply Schedule and Supply Curve are of two types
1) Individual Supply Schedule & Individual Supply Curve 
2) Market Supply Schedule & Market Supply Curve
Page 5


Law of Supply
What is supply?
‘ S up pl y refers to the quantity of a commodity
which producers or sellers are willing to
produce and offer for sale at a particular
pri ce ’, in a given market, at a particular period
of time
The three important aspects of  
supply ar e….
• Supply is a desired quantity
• Supply is always explained with  reference to
price
• Time during which it is offered for sale
Supply Schedule and Supply Curve
Supply schedule shows a tabular representation of law of
supply. It presents the different quantities of a product that a
seller is willing to sell at different price levels of that product.
The graphical representation of supply schedule is called
supply curve.
Supply Schedule and Supply Curve are of two types
1) Individual Supply Schedule & Individual Supply Curve 
2) Market Supply Schedule & Market Supply Curve
Individual supply schedule & Individual 
Supply Curve
Refers to a supply schedule that represents the different quantities of a product
supplied by an individual seller at different prices.
The supply curve is showing a straight line and an upward slope. This implies that
the supply of a product increases with increase in the price of a product.
Price of Milk (Per 
liter in Rs)
Quantity 
Supplied (1000 
per day in 
liters)
10 10
12 15
14 20
16 25