What is Stock And Supply?


  • In ordinary sense, the term supply is taken to mean as the total output of a commodity with a producer or seller
  • In economics: SUPPLY of a commodity refers to the various quantities which a seller is willing and able to sell at different price in a given market at a point of time, other things remaining the same.

SUPPLY AND STOCK
  • Stock is at the back of supply. It constitutes the potential supply
  • on the other hand supply means the actual quantity of a product which is effected of sale in the market at a certain price, place and time
  • Example: the wheat godsons are examples of stock. At certain price, the amount of wheat come into the market for sale is called supply. Those stock of commodity will transform (convert) into supply and vice-versa as the market price rises or falls.
  • Seller reservation price affects the release of stock for supply in the market
  • Seller reservation price means the minimum price fixed the seller to offer a part or whale of his stock of a commodity for sale in the market at a given time and price Below which he will not be prepared to sell even a single unit of the stock
  • The reservation price means the minimum price which the seller should get for the commodities.

DIFFERENCE BETWEEN SUPPLY AND 

STOCK

Meaning

  • Stock is the total quantity of a product held by a producer or a seller. Means the stock refers to potential supply
  • Supply refers' to the actual quantity of a product which is offered for sale in the market at given price, place and time.
Order
  • Stock comes before supply
  • Supply there can be no supply without stock.
Dependency
  • Stock depends on production
  • Supply depends on stock and price
Function
  • Stock is function of production Stock = f(Stock,price)
  • Supply is function of stock and price Supply = f(Stock, price)

Comparative analysis

  • Stock can be greater than supply because stock is source of supply
  • Supply can never by greater than stock. it is always either equal or less then the stock.


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