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Supply is the “Quantity of a commodity, which a seller offers for sale, in the market, at a particular price and at a particular time”. Supply is different from stock. Stock is the total quantity of goods, which is stored in the warehouse, but it will not be offered for sale. Hence supply is only a part of the stock, which is offered for sale. The concept of supply should be studied from the manufacturer point of view.


Note: Supply is a flow concept. It is studied as so much per day, per week, per month, per year, etc. Supply is only restricted to what the firms offer for sale and not with how much they sell.



A firm may produce 60,000 TV sets, but it may only sell 40,000 sets. Here, we consider the 60,000 sets which the firm offers for sale and not the 40,000 sets actually sold. Therefore, we only study as to what is offered for sale. Here 60,000 sets is the stock and 40,000 sets is the sale.

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