Supply Schedule

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What is Supply Schedule?

In economics, a Supply schedule is defined as a tabular representation of the law of supply. It represents the quantities of a product supplied by a supplier at different prices and time periods, keeping all other factors constant.

Read: What is Supply?


Types of Supply Schedule

There can be two types of supply schedules and those are explained below:

  1. Individual supply schedule
  2. Market supply schedule

Individual Supply Schedule

Individual supply schedule definition: This schedule represents the quantities of a product supplied by an individual firm or supplier at different prices during a specific period of time, assuming other factors remain unchanged.

Example

Let us understand the individual supply schedule with the help of an example. Table shows the supply schedule of a firm supplying commodity A:

Price of the Product
(₹ per Kg)

5
10
15
20

Quantity Supplied of Commodity A (Kg per Week)

3,000
8,000
12,000
15,000

From Table 3.1, it is clear that the firm is supplying 3,000 kg per week of commodity A at the price of 5 per kg. As the price rises from 5 to 10 per kg, the firm also increased the supply to 8,000 per kg. Therefore, the individual supply schedule shown in Table 3.1 indicates that the quantity supplied increases with a rise in price.

Market supply schedule

Market supply schedule definition: This schedule represents the quantities of a product supplied by all firms or suppliers in the market at different prices during a specific period of time, while other factors are constant.

In other words, market supply schedule can be defined as the summation of all individual supply schedules. Table 3.2 shows the market supply schedule of two firms X and Y for the commodity A:

Example

Price of Product A (₹ per kg)Quantity Supplied by Firm X (1000 kg per week)Quantity Supplied by Firm Y (1000 kg per week)Market Supply (1000 kg per week)
53710
1081220
15121527
20151732

In Table 3.2, market supply is calculated by combining the quantities supplied by firm X and Y. It also shows when the commodity is priced at ₹5 per kg, the market supply of commodity A is 10,000 kg per week. When the price rises to ₹10 per kg, the market supply also increases to 20,000 per kg. So it can be observed, that a rise in price of the commodity A increases the market supply.

Read: What is Supply Curve?

Reference
  1. D N Dwivedi, Managerial Economics, 8th ed, Vikas Publishing House

  2. Petersen, Lewis & Jain, Managerial Economics, 4e, Pearson Education India

  3. Brigham, & Pappas, (1972). Managerial economics, 13ed. Hinsdale, Ill.: Dryden Press.

  4. Dean, J. (1951). Managerial economics (1st ed.). New York: Prentice-Hall.


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