Supply and quantity supplied are two fundamental concepts in economics that are often misunderstood. While they are related, they represent different ideas.
Supply refers to the entire relationship between the price of a good and the quantity of that good that producers are willing to sell. It is depicted as a curve on a graph. The supply curve typically slopes upwards, indicating that as the price increases, the quantity supplied also increases. This positive relationship is due to the fact that higher prices generally incentivize producers to supply more of a good, as they can cover production costs and potentially earn a profit.
Quantity Supplied, on the other hand, refers to the specific amount of a good that producers are willing to sell at a particular price. It is a point on the supply curve. For example, if the price of a product is set at $10, the quantity supplied at that price might be 100 units. If the price changes to $12, the quantity supplied would likely increase to 150 units, reflecting the producers’ willingness to supply more as the price rises.
To visualize this, consider the following graph:
Figure: Supply Curve Showing Supply and Quantity Supplied
In the graph, the upward-sloping line represents the supply curve. Each point along this line illustrates a different quantity supplied (like A, B, and C) at varying price levels. For instance, point A might represent a quantity supplied of 50 units when the price is $5, while point B indicates a quantity supplied of 100 units when the price is $10.
In summary, the main difference is that supply encompasses the entire relationship between price and quantity, represented by the supply curve, while quantity supplied is a specific point on that curve for a given price.