Question

Distinguish between:

Stock and Supply

Answer 1

	Aspect	Stock	Supply
1.	Meaning	Stock is the total quantity of goods available for sale with a seller at a particular point in time.	Supply refers to the quantity of goods that a seller is able and willing to offer for sale at a particular price during a certain period of time.
2.	Origin	Stock is the outcome of production.	Supply is derived out of stock.
3.	Increase	Stock can be increased if production is increased.	Supply can be increased if stock is increased.
4.	Relation	Stock is generally more than supply.	Supply can be less than or equal to stock. However, it cannot exceed stock.
5.	Basis	Stock is a static concept and is not expressed in relation to price and time.	Supply is a flow concept and is always expressed in relation to price and time.