Supply is the quantity of a commodity that a producer is willing and able to offer for sale at a given price during a given period of time. The quantity of a commodity being supplied by a firm can be represented in many ways, one of these is a supply schedule.
Supply schedule is a tabular statement showing number of units of a commodity being supplied at various levels of price, during a given period of time. There are two types of supply schedules –
Individual Supply Schedule
Individual supply schedules refer 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.
|Price (in Rs.)||Quantity supplied of Good X|
As seen in the schedule given above, quantity supplied of commodity X increases with increase in price. The firm is willing to offer for sale 5 units of X at a price of Rs. 1. When the price rises to Rs. 2, supply also rises to 10 units.
Market Supply Schedule
Market supply schedule refers to a tabular statement showing various amounts of a commodity that all the producers are willing to offer for sale 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 can be expressed as –
Where Sm is the market supply and SA+SB… are the individual supply of supplier A, supplier B and so on.
|Price (in Rs.)||Individual Supply (units)||Market Supply (units)
|1||5||10||5+10 = 15|
|2||10||20||10+20 = 30|
|3||15||25||15+25 = 40|
|4||20||35||20+35 = 55|
|5||25||40||25+40 = 65|
As we can see in the table given above, 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, it also shows a direct relationship between price and quantity supplied.