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INTRODUCTION
Supply refers to the schedule of quantities of a commodity that
will be offered for sale at various prices.
Supply Schedule
5
2 200
3
3 300
4 400
2
5 500
6 600 1
0
100 200 300 400 500 600
REASONS FOR SUPPLY CURVE MOVING UPWARDS
Goal of earning higher profit by the producer
Dependence Stock Of the commodity mainly depends on Supply Of a commodity depends mainly on
a) Production of commodity . the market price of the commodity
b) Procurement price
c) Storage & transport cost
d) Perishable nature of commodity
Concept It has a stock concept i.e. stock refers to amount of It is a flow concept i.e. it refers to the amount
a commodity at a particular point of time of a commodity that the firm produce &
offer for sale in the market during a period
of time.
Commodities In case of highly perishable commodity, stock & In case of durable commodity supply consists
supply would almost the same since these items only a part of total stock
cannot be stored for a long period.
Objective The stock of any commodity helps in checking Enables the firm to earn sales revenues
fluctuations of market price.