Economics · Class 12 Commerce
Ch 5Supply Analysis — Class 12 Economics, concept-first.
Having studied how a buyer's demand behaves, the Maharashtra HSC (MSBSHSE) Std XII Economics syllabus turns next to how a seller's or producer's supply behaves — supply is the other blade of Alfred Marshall's famous 'scissors' that together determine market price.
Key concepts
Hover a concept to preview it and jump to its most relevant Q&A.
Meaning of Supply, Stock and the Supply Function
Supply is the quantity of a commodity a producer or seller is willing AND able to offer for sale at a given price, over a given period of time — distinct from stock, which is the entire quantity physically available with…
Most relevant Q&A
- Distinguish between 'supply' and 'stock' as used in economics.Free
- Explain the supply function and its important determinants.Free
- Give economic terms: The period in which all factors of production are variable.Preview
- Identify and explain the following concept. Out of 4000 kgs of rice, the farmer offered to sale 1000 kgs of rice in the market for ₹ 40 per…Preview
- Assertion (A): Supply is a relative term. Reasoning (R): Supply is always expressed in relation to price, time and quantity. (a) (A) is true…Preview
Chapter contents
The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.
Meaning of Supply and Supply vs. Stock
Having studied how a buyer's demand behaves, the Maharashtra HSC (MSBSHSE) Std XII Economics syllabus turns next to how a seller's or producer's supply behaves — supply is the other blade of Alfred Ma…
Determinants of Supply and the Supply Function
The quantity of a commodity a seller is willing to supply depends on more than its own price alone — several factors act together, captured in the supply function:
Supply Schedule and Supply Curve
A supply schedule is a table showing the various quantities of a commodity a seller is willing to offer for sale at different prices, over a given period, other things remaining constant.
The Law of Supply
The Law of Supply states that, other things remaining constant (ceteris paribus), the quantity supplied of a commodity is directly (positively) related to its price — as price rises, quantity supplied…
Exceptions to the Law of Supply
A few genuine situations depart from the Law of Supply, where quantity supplied does NOT move in the same direction as price, or is entirely unresponsive to it.
Movement Along vs. Shift of the Supply Curve
Exactly as with demand, a change in quantity supplied can come about in two structurally different ways, and Maharashtra Board Std XII Economics exams routinely test whether a student can tell them ap…
Elasticity of Supply — Meaning and Degrees
The Law of Supply only tells us the DIRECTION in which quantity supplied moves when price changes; it says nothing about HOW MUCH.
Measurement of Price Elasticity of Supply
Two methods are commonly used in MSBSHSE Std XII Economics to actually compute price elasticity of supply.
Factors Determining Elasticity of Supply
Several factors decide how elastic or inelastic the supply of a particular commodity turns out to be:
Exercises
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- Q5Distinguish between 'supply' and 'stock' as used in economics.Free
- Q6Explain the supply function and its important determinants.Free
- Q7State the Law of Supply. What are its main assumptions?Free
- Q8Distinguish between movement along the supply curve and shift of the supply curve.Preview
- Q9Explain any three exceptions to the Law of Supply.Preview
- Q10Explain the different degrees of price elasticity of supply.Preview
- Q11Explain the important factors that determine the elasticity of supply of a commodity.Preview
- Q12Choose the correct alternative and justify: A straight-line supply curve that passes through the origin shows — (a) Perfectly elastic supply…Preview
Sample & Board Papers
Sample papers and previous-year board questions for this subject.
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- Q1Give economic terms: The period in which all factors of production are variable.Preview
- Q2Assertion and reasoning question: Assertion (A): With a rising price, the supply of a commodity falls. Reasoning(R): Seller earns more profi…Preview
- Q3Identify and explain the following concept. Out of 4000 kgs of rice, the farmer offered to sale 1000 kgs of rice in the market for ₹ 40 per…Preview
- Q4State with reason whether you agree or disagree with the following statement: The supply curve of labour is backward bending. (a) Agree (b)…Preview
- Q5Assertion (A): Supply is a relative term. Reasoning (R): Supply is always expressed in relation to price, time and quantity. (a) (A) is true…Preview
- Q6Distinguish between: Stock and SupplyPreview
- Q7There are no exceptions to the law of supply. (a) Agree (b) DisagreePreview
- Q8Give an economic term: Net addition made to the total cost by producing one more unit of output.Preview
- Q9______ : Change in supply : : Other factors constant : Variation of supplyPreview
- Q10State and explain the law of supply.Preview
- Q11When the supply curve is upward-sloping, its slope is ______. (a) Positive (b) Negative (c) First positive then negative (d) ZeroPreview
- Q12Identify and explain the following concept: Rajaram produced 25 quintals of wheat in his field; from it, he kept aside 2 quintals of wheat f…Preview
- Q13Distinguish between expansion of supply and increase in supply.Preview
- Q14State with reason whether you agree or disagree with the following statement: There are some exceptions to the law of supply. (a) Agree (b)…Preview
- Q15Complete the correlation: Price rises : ______ : : Price falls : Contraction of supplyPreview
- Q16Give the economic term: Cost incurred on fixed factor.Preview
- Q17Find the odd word: Exceptions to the Law of supply: Giffen’s goods, Supply of labour, Perishable goods, Rare goodsPreview
- Q18Observe the following table and answer the questions given below it: | Price in ₹ | Qty. supplied in units | | --- | --- | | 10 | 200 | | 15…Preview
- Q19State whether the following statement is True or False: Supply is indirectly related to price. (a) True (b) FalsePreview
- Q20Distinguish between: Extension in supply and Contraction in supply.Preview
- Q21State with reasons whether you agree or disagree with the following statement: There are no exceptions to the law of supply. (a) Agree (b) D…Preview
More questions
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- Example 1The price of a commodity rises from ₹10 to ₹12 per unit, and as a result the quantity supplied rises from 100 units to 130 units per week. C…Free
- Example 2A straight-line supply curve, when extended backward, cuts the price axis at ₹4 (where quantity supplied would be zero), and passes through…Free
- Example 3A commodity's market supply curve is given by the equation Qs = 5P (a straight line passing through the origin). Show, by computing the pric…Preview
- Example 4Choose the correct alternative and justify: According to the Law of Supply, other things remaining constant, price and quantity supplied are…Preview