Distinguish : stock and supply
Answers
Answer:
Explanation:
(1) Stock: Stock is the total quantity of commodity available with the producer for sale at a point of time. Stock is outcome of production. If production increases stock will increase so will supply. Stock determines potential supply. Generally, stock is more than supply. But in case of certain goods like vegetables, fruits, flowers, which are perishable the stock can be equal to supply. But in case of durable goods, stock can be greater than supply, it can never be less than supply.
(2) Supply: Supply refers to the various quantities of a commodity which sellers are able and willing to offer for sale during a given period or point of time say per day per week, per month or a year. Supply is what the seller is able to offer for sale. The ability of the seller to offer for sale depends on the stock of commodity that the producer has and willingness to sell depends on the difference between the reservation price and the prevailing market price.
stock refers to entire quantity of commodity which is the custody of seller and supply refers to the quantity of commodity offered for sale at a given price and at a given time and place