What is the difference between supply vs quantity supplied?

Supply vs Quantity Supplied

Supply vs Quantity Supplied: Supply shows the relationship between all the market prices and quantities of supply while quantity of supply shows the relationship between the specific price and quantity of supply.

Quantity of supply: Relationship between a specific price and quantity of supply.

Supply: Relationship between all the market prices and quantities of supply

In other words, supply means when the price of the particular good remains unchanged, the relationship between the supply of the goods and other factors (the price of the inputs, technology, producers’ expectations, government policies, and so on) that affect the supply. Quantity of supply means the number of supplies by the suppliers at given market prices when the other factors influence to supply remain unchanged.

Supply vs Quantity Supplied : Comparison Table

Supply	Quantity Supplied
Supply shows the relationship between all the market prices and quantities of supply.	Quantity of supplied means the number of units of a good that suppliers are going to produce and sell under a given market price.
Supply is illustrated by the entire supply curve	Quantity of supply is illustrated by a point of the supply curve
Change of the supply is presented by the shift of the entire supply curve	Change of the quantity of supply is presented movement of the point along the supply curve.
Using supply statistics, we can determine how much the market can offer.	Using quantity of supply statistics, we can determine quantity of goods can be produced by a producer at a certain price.
Supply is changed by the non-price determinants	Quantity of supply is changed by the price of particular product.

What is supply and quantity supplied?

Supply

Supply shows the relationship between all the market prices and quantities of supply.

Supply means when the price of the particular good remains unchanged, the relationship between the supply of the goods and other factors (the price of the inputs, technology, producers’ expectations, government policies, and so on) that affect the supply, within a specific period. These factors can shift the supply curve to leftward or rightward.

Quantity supplied / quantity of supply

Quantity of supplied means the number of units of a good that suppliers are going to produce and sell under a given market price.

Quantity of supply means the number of supplies by the suppliers at given market prices when the other factors influence to supply remain unchanged.

What is the relationship between quantity supplied and price?

The relationship between the price of a good and its quantity supply can be stated as,

Qs = f (P).

A particular spot on the supply curve is referred to as quantity supplied. “Quantity supplied” depicts how much or how much is prepared to be offered for a specific market price.

The relationship between price and quantity supplied is positive. In other words, there is a positive relationship between the price of a particular good and its quantity of supply. That means, if the price of a good is increased, the quantity of supply will be increased and vice versa. Let’s consider the graphical representation of this relationship.

Change in supply and change in quantity supplied

Change in supply

Supply shows the relationship between all the market prices and quantities of supply. So, Supply is illustrated by the entire supply curve. Change in supply is presented by the shift of the entire supply curve.

Supply is changed by the non-price determinants (the price of the inputs, technology, producers’ expectations, government policies, and so on). These factors cause the rightward or leftward shift of the supply curve

Let’s discuss about these factors.

what changes supply?

1. Future expectations

Suppliers decide the present amount of supply based on the expectations of future prices. If prices will be increased in the future, suppliers try to sell the products in future as far as possible. So, they try to hold the current supply and they wish for a rise in price. This shifts the supply curve to leftward.

If prices will be decreased in the future, suppliers try to sell the products in the present as far as possible. In the future, they wish to sell less amount. (Spaulding, n.d.). This shifts the supply curve to rightward.

But these predictions can be different from the actual future situation.

2. Input Prices.

According to the economics theories, there are four major factors (inputs) that are utilized in the production process. These factors are labour, capital, land and entrepreneurship. Each of these factors has a price. So, fluctuations of the prices of inputs can effect to the supply of a company. When input prices are increased, cost of the production will be increased. So, profitability of the company will be decreased and company becomes less attractive to supply. This will shift the supply curve to leftward.

On the other hand, when input prices are decreased, cost of the production will be decreased. So, profitability of the company will be increased and the company becomes more attractive to supply (Beggs, 2019). This will shift the supply curve to rightward.

3. Production Technology.

Production technology refers method of using to convert inputs into outputs in a company. Mainly production technology can be labor intensive or capital intensive. There can be improvements in the production technology and they can increase the output level of an organization without increasing the inputs. In other words, by improving the production technology, a company can decrease the marginal cost of producing additional units. Technological improvements shift the supply curve to rightward.

There was a technological improvement in the Malaysian electronic industry. Especially in the electronic companies in the state of Penang ¹. This technological improvement will shift the supply curve to the rightward. Let’s assume that, following is the supply for the microchips in Malaysia.

Assume that S1 supply curve presents the supply for the microchips in Malaysia, before the technological improvement. As the result of the technological improvement in microchip industry, supply curve has been shifted to the right (S2). Now suppliers supply more microchips at than before at the same price level. So, consumers can buy more microchips. That is how concept of the supply affects to the activities of the customers and producers.

4. Government Policies

There are two major types of government policies which can directly impact the supply side of the business organizations. They are subsidies and taxes. Subsidies are benefits to the individuals or a group people while taxes are burden to the individuals or group of people. Effect of a subsidy is same to the effect of technical improvements. Because subsidies shift the supply curve of a company to the rightward.

Change in quantity supplied/ Change in Quantity of Supply

Quantity supplied means the number of units of a good that producers are going to sell under a given market price. The quantity supplied is illustrated by a point of the supply curve.

What are the factors affecting the quantity supplied?

The quantity of supply is changed by the price of a particular product. Change in the quantity supply is presented as the movement of the point along the supply curve.

Assume that following is the “supply curve for the Wheat in USA for a week”.

The minimum supply price per wheat 1 kg is $ 2. That means, when the price of wheat 1kg is $ 2, the quantity of supply is equal to zero. The supply curve starts from this point. If the price is less than $ 2, suppliers will not supply the wheat.

In this graph, if price is increased from $4 to $8, the quantity demanded will be moved from point A to point C along the supply curve. In other words, there will be an increase in quantity supplied.