Individual Supply and Market Supply - Commerce PDF Download

Types of Supply Schedule: Individual Supply and Market Supply!

Supply schedule is a tabular statement showing various quantities of a commodity being supplied at various levels of price, during a given period of time. Like demand schedule, supply schedule is also of two types:

Individual supply schedule

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1. Individual Supply Schedule:

Individual supply schedule refers to a tabular statement showing various quantities of a commodity that a producer is willing to sell at various levels of price, during a given period of time.

Table 9.1 shows a hypothetical supply schedule for commodity ‘x’.

Table 9.1: Individual Supply Schedule:

As seen in the schedule, quantity supplied of commodity x increases with increase in price. The producer is willing to sell 5 units of x at a price of Rs. 1. When the price rises to Rs. 2, supply also rises to 10 units.

2. Market Supply Schedule:

Market supply schedule refers to a tabular statement showing various quantities of a commodity that all the producers are willing to sell at various levels of price, during a given period of time. It is obtained by adding all the individual supplies at each and every level of price.

Market supply schedule is expressed as: S_m = S_A + S_B + ……………

Where S_m is the market supply and S_A + S_B +……. are the individual supply of supplier A, supplier B and so on.

Let us understand the derivation of market supply schedule with the help of Table 9.2 (Assuming, there are only 2 producers: A and B in the market):

Table 9.2: Market Supply Schedule:

As seen in Table 9.2, market supply is obtained by adding the supplies of suppliers A and B at different prices. At price of Rs. 1, market supply is 15 units. When price rises to Rs. 2, market supply rises to 30 units. So, market supply schedule also shows the direct relationship between price and quantity supplied.