what is supply and stock
Answers
Supply:
It is the quantity of goods that a seller is willing to sell at a given price in a given period of time.
It has a positive relationship with price of commodity, which means supply increases with increase in the commodity's price.
Stock:
It the amount of goods procured and stored with the seller, which can be sold by him.
Main difference:
Stock remains the same, unless more goods are purchased/sold. But, supply changes with change in price of commodity. It is the amount of goods, that a seller is willing to sell at a given price.
Example:
Mr. A is a trader of pens, who buys pens from a manufacturer and sells it to the consumer.
Mr. A puchases 10,000 pens from the manufacturer. This is the stock.
The price of each pen was Rs. 6 and at that price, Mr. A was willing to sell 6000 pens. This is supply.
But, due to factors like demand, change in tastes and preferences of consumers etc, the price of each pen rises to Rs. 10.
At this new increased price, the seller is willing to sell all of the 10,000 pens. This is called supply.