1. Supply Analysis

2. Meaning of Supply Stock for sale Readiness/willingness to sale
In simple words, supply is an amount of goods and services which a seller is willing to sale at a given time period at a given price, other things remaining same. The term supply includes –
Stock for sale
Readiness/willingness to sale
Given amount/quantity of goods and services
Given price
Given time period

3. Definition
Thomas - “The supply of goods is the quantity offered for sale in a given market at a given time at various prices.”
Anatol Murad, “The quantity supplied refers to the quantity of a commodity offered for sale at a given price in a given market at a given time.”

4. SUPPLY SCHEDULE Individual Supply Schedule
Price ( Rs.)
Q.S. (Units) 1 10 2 20 3 30 4 40 5 50

5. Market Supply Schedule
Price (Rs)
Firm A
Firm B
Market Supply 1 10 5 15 2 20 30 3 50 4 40 70 90

6. SUPPLY CURVE
Individual Supply Curve
Market Supply Curve

7. Law of Supply
In Law of Supply, the relation between price and supply of a commodity is studied, whereas other factors remain constant. There is a positive relation between price and quantity supplied.
Qs =f (P)
 Dooley - “The Law of Supply states that, other things being equal, the higher the price, the greater the quantity supplied or the lower the price, the smaller the quantity supplied.”

8. Assumptions: Prices of a particular commodity are changeable.
Prices of related goods remain constant.
Methods of product will not change.
Technology is constant.
Cost of production is constant.
Size of industry or number of firms is same.
Taxation policy is constant.
Government policy is constant.

9. Tabular Explanation
Price ( Rs.)
Q.S. (Units) 1 10 2 20 3 30 4 40 5 50

10. Factors Affecting Supply of Goods
QS = Quantity Supplied P = Price of a commodity S = Subsidy PR = Price of related goods TX = Tax Pi = Price of inputs GF = Goal of firms SN = Number of suppliers PE = Price Expectations T = Technology GP = Government Policy

11. Change in Supply Movement along Supply Curve Shifting of Supply Curve
Extension or Expansion of Supply
Contraction of Supply
Shifting of Supply Curve
Increase in Supply
Decrease in Supply