Concept of Supply - Supply Schedule and Supply Curve

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Notes

Supply schedule :

A supply schedule is a tabular representation of the functional relationship between price and quantity supplied of a particular commodity.

1) Individual Supply Schedule :

Individual supply schedule refers to a tabular representation showing various quantities of a commodity that a producer is willing to sell at various prices, during a given period of time. 

The table explains the functional relationship between price and quantity supplied of a commodity. Lower the price, lower the quantity of a commodity supplied and vice versa. At the lowest price of ₹10, supply is also lowest at 100 kgs. At the highest price of ₹50, quantity supplied is highest at 500 kgs.

Individual Supply Curve :

It is a graphical presentation of individual supply schedule.

In the figure, quantity supplied is shown on the X axis and price on the Y axis. Supply curve SS slopes upwards from left to right, indicating 
a direct relationship between price and quantity supplied.

2) Market Supply Schedule :

Market supply schedule refers to a tabular representation showing different quantities of commodity which all producers are prepared to sell at different prices at a given period of time.

In the Table, market supply is obtained by adding the supply of sellers A, B and C at different prices. At a highest price of ₹50, market supply is the highest at 1800 kgs. At a lowest price of ₹10 market supply is lowest at 600 kgs.

Market Supply Curve :

It is a graphical presentation of market supply schedule.

In the Table, quantity supplied is shown on the X axis and price on the Y axis. Supply curve SS slopes upwards from left to right, indicating a direct relationship between price and market supply.

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Video Tutorials

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