Definition
- Supply
- Supply is the amount of a good or service a producer is willing to supply at each price.
- Not to be confused with: Quantity supplied
- Quantity supplied is the amount offered at one particular price, a single point on the supply curve.
Example
Can you think of an example of supply?
At £150 a tonne a farm offers 200 tonnes; at £200 it offers 260; at £250 it offers 300, hiring extra help to bring the last of it in. Those three pairs are three points on one supply curve, and each single figure is a quantity supplied.
Test yourself
What is the difference between supply and quantity supplied?
Supply is the whole schedule at every price; quantity supplied is one point on it, at one price.