Class 11 Economics

1. SUPPLY
UNIT 3

2. MEANING OF SUPPLY
 Quantities of a commodity that firms are able and
willing to offer for sale in the market in a given
period of time and at a given price. It highlights 4
essential elements –
 Quantity of a commodity.
 Willingness to sell
 Price of the commodity
 Period of time

3. Supply and Stock-
Stock refers to total quantity of a particular commodity that is available
with the firm at a particular point of time. On the other hand , supply
is that part of stock which a producer is willing to bring in the market
for sale.
For example- if a seller has 50 tonnes suger in his godown and he is
willing to sell 30 tonnes at a price of Rs. 38 per kg then supply is 30
tonnes and stock is 50 tonnes.
Individual and market supply-
Individual supply refers to quantity of a commodity that an individual
firm is willing and able to offer for sale at a given price during a
given period of time.
Market supply refers to quantity of a commodity that all the firms are
willing and able to offer for sale at a given price during a given
period of time.

4. INDIVIDUAL & MARKET SUPPLY SCHEDULE

5. INDIVIDUAL & MARKET SUPPLY CURVE- MARKET
SUPPLY CURVE IS MORE FLATTER THAN INDIVIDUAL
SUPPLY CURVE

6. SUPPLY FUNCTION- INDIVIDUAL SUPPLY
FUNCTION

7. SUPPLY FUNCTION- MARKET SUPPLY FUNCTION
It refers to the functional relationship between market supply and factors
affecting the market supply.

8. Change in own price of
the commodity leads to
movement along the
same demand curve

9. Change in other Change in factors
other than own price of the
commodity will lead to shift in
supply curve

11. Goals of the firm – With change in trend
some firms are willing to supply more
even at those prices which do not
maximise their profit but helps them to
capture extensive markets.