An Increase in Supply vs An Increase in Quantity Supplied

Precision in Using Words or Economics as a Second Language

An Increase in the Quantity Supplied

The Quantity Supplied is an amount at a given price while Supply is the entire relationship between the various Quantities Supplied at a variety of prices.

When the price increases from P1 to P2, the quantity supplied increases from Q1 to Q2.

Changing the price leads to changes in the quantity supplied.

Paying extra for overtime is a way to increase the quantity supplied.

An Increase in Supply

Supply is the relationship between Prices and Quantities Supplied.

Changes in things other than the price of the good or service may lead to changes in supply.

The hurricanes of the summer of 2004 damaged the tomato crop in Florida; this is best illustrated by a decrease in supply.

So to an economist, supply is not the same as the quantity supplied.

Just as listening to hip-hop with Russell Simmons is not the same as doing the bunny hop with Richard Simmons.

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last update: 16 September 2005