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Chapter-4 Supply Analysis [Latest edition] [Latest edition] Q.4. Distinguish between: 1. Stock and Supply

Balbharati solutions for Economics HSC 12th Standard Maharashtra State Board 

 

Chapter-4 Supply Analysis [Latest edition] [Latest edition]

Q.4. Distinguish between:

1. Stock and Supply.

STOCK SUPPLY

STOCK

SUPPLY

MeaningStock refers to the entire quantity of a commodity that is in the custody of the seller. So it is the potential supply.

Supply refers to the quantity of a commodity offered for sale at a given price and at a given time and place.

Dependence: -Stock depends on the production.

Supply depends on stock and price.

Relationship: - Stock can be greater than the supply.

(a) For perishable commodities the stock and the supply can be the same.

(b) For durable commodities, the stock can be more than the supply.

Supply cannot be greater than the stock.

Supply is either equal or less than the stock.

Order of existence : - Stock comes before supply

Supply follows stock there cannot be supply without stock.