Introduction

In this article you will learn about " Difference Between Individual Supply And Market Supply " in simple language so that you can understand it well. Before knowing about the individual supply and market supply you should know the meaning and features of supply because it will help you in understanding the further topics clearly. 

Meaning Of Supply

Supply simply means to give or provide something that is needed. But in economics the meaning of supply is slightly different and wide. In economics, supply may be defined as " Supply refers to quantity of a commodity that a firm is willing and able to offer for sale at a given price during a given period of time. It is also expressed as a relationship between price and quantity. It refers to the quantity which a producer is willing to offer for a sale, which changes with change in price. The term supply is often confused with stock of the commodity. However, in economics both terms are different. 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. Stock can never be less than the supply. 



Read more :- Partnership Deed : Its Meaning, Contents And Importance https://theeducationtheory.blogspot.com/2023/11/partnership-deed-its-meaning-contents.html?m=1

Features Of Supply

1. Supply is a desired quantity

It indicates only the willingness of the firm that how much quantity of a commodity firm wants to sell. That is, it indicates how much the firm is willing to sell and  not how much it actually sells. 

2. Supply of a commodity does not comprise the entire stock of the commodity

It indicates the quantity that the firm is willing to bring into the market at a particular price. 

3. Supply is always expressed with reference to price

Supply of a commodity is always at a price because with a change in price, the quantity supplied may also changed. 

4. Supply is always with respect to a period of time

Supply is the quantity, which the firm is willing to supply during a specific period of time ( a day, a week, a month or a year). 

Difference Between Individual Supply And Market Supply

1. Meaning

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. Whereas 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. 

2. Number of firm

Individual supply shows the supply of only one firm during a given period of time. On the other hand, market supply shows the supply of many firms during a given period of time. 

3. Supply curve

Individual supply curve is relatively sleeper whereas market supply curve is relatively flatter. 

4. Determinants of supply

Factors that determine the individual supply are price of the given commodity, price of other commodity, state of technology, prices of factors of production, government policy and goals of the firm. Whereas factors that determine the market supply are number of firms in the market, future expectations regarding price, means of transportation and communication along with all the factors affecting individual supply.