Economic Measures
Economic Models
Interest Rates

Quantity Supplied vs. Supply

QUANTITY SUPPLIED IS NOT THE SAME AS SUPPLY. This is a huge mistake people make in this course. What's the difference?

Quantity Supplied is the amount of a good or service that a supplier is willing to supply at a given price.


Supply is the relationship between price and quantity supplied and is usually shown as a line of a graph. Quantity supplied is a single point on that line. 

Changes in Quantity Supplied

Remember that quantity supplied is NOT THE SAME as supply. All else constant, quantity supplied is only changed by price. 

Currently in the market for white sneakers, shoes are selling at a price of $100. However, the price of white sneakers doubles to $200. What happens to the quantity supplied?

At a price of $100, Swag & Co is supplying 1 pair of white sneakers. When the price increases to $200, they are now willing to supply 3 pairs because they will make more money. This example can be solved on a graph. 

A Change in price DOES NOT change supply. Again, quantity supplied and supply are not the same thing.