What is the difference between supply and quantity supplied?
The difference between supply and quantity supplied is as follows:
Supply refers to the entire range of potential quantities of a product or service that suppliers are willing and able to offer for sale at various possible prices, during a specific time period, assuming other factors remain constant.
Quantity supplied, on the other hand, refers to the actual amount of a product or service that suppliers are willing and able to offer for sale at a specific price and during a specific time period.
In simple terms, supply represents the entire relationship between price and quantity of a product, while quantity supplied refers to a specific point on that supply curve corresponding to a given price.
The difference between supply and quantity supplied is as follows:
1. Supply: Supply refers to the total quantity of a specific good or service that producers are willing and able to offer for sale at each possible price, over a given time period. It represents the entire range of quantities that producers are willing to supply at different prices.
Supply is influenced by factors such as the cost of inputs, technology, production capacity, government regulations, and producer expectations. It is represented by the upward-sloping supply curve, showing the relationship between price and quantity supplied.
2. Quantity Supplied: Quantity supplied, on the other hand, refers to the specific amount of a product or service that producers are willing to offer for sale at a particular price during a given time period. It represents a single point or value on the supply curve.
The quantity supplied is determined by the prevailing market price for a product or service. When the price rises, producers are generally willing to supply more of the product, and when the price falls, the quantity supplied decreases. Therefore, changes in price cause movements along the supply curve, resulting in changes in quantity supplied.
In summary, while supply refers to the entire range of quantities that producers are willing to offer at various prices, the quantity supplied is the specific amount that producers are willing to supply at a given price.