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Questions
Distinguish between supply and stock.
How does supply differ from stock?
Differentiate between supply and stock of a commodity.
Distinguish between stock and supply.
Distinguish Between
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Solution
| Sr. No. |
Basis | Supply | Stock |
| 1. | Meaning | Supply is that part of stock which is offered for sale and changes with a change in price. | Stock indicates the total quantity of the commodity available for sale. |
| 2. | Nature | Supply is a flow concept, as it relates to a period of time. | Stock relates to a particular point in time. |
| 3. | Relation | Supply is always less than the stock, except in the case of perishable goods. | Stock is always greater than supply except in the case of perishable goods. |
| 4. | Quantity | Supply is usually smaller than stock, as only a part of the stock is released in the market. | Stock is generally larger than supply, as it includes the whole availability of a commodity. |
| 5. | Example | If he offers 80 bags of rice for sale at the current price, that is his supply. | A trader has 200 bags of rice in his godown. This is his stock. |
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Notes
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