The major difference in both terms is that Individual supply refers to the quantity supplied by the single seller whereas Market supply refers to the quantity supplied by all sellers in the market.
To know the difference between these two, we must clear the meaning of these terms:
Meaning of Individual Supply: –
It refers to the demand by an individual or firm. Individual demand refers to the quantity demanded by a single consumer or firm at a specific price in a given period of time.
Meaning of Market Supply:-
It refers to the demand by all the individuals or the firms. Market demand refers to the quantity demanded by all the consumers or firms at a specific price in a given period of time.
Chart of Difference:
Basis of Difference |
Individual Supply | Market Supply |
|
Meaning |
It refers to the quantity of commodity supplied by a single seller. | It refers to the quantity of a commodity supplied by all the sellers or the firms in the market. |
| Shown by | Individual Supply is shown by the Individual Supply Schedule and Individual Supply Curve. | Market Demand is shown by the Market Supply Schedule and Market Supply Curve. |
|
Inter-Relationship |
Individual supply is a component of Market supply. | It is the aggregation of individual supply. |
| Supply Curve | The individual supply curve is relatively steeper. | The market supply curve is relatively flatter. |
| Scope | It has a narrower scope as it is related to the supply of a seller only. | It has a broader scope as it is related to the supply of all the sellers. |
|
Represents |
It represents different quantities of a commodity supplied by an individual at different prices in the market. | It represents different quantities of a commodity supplied by all sellers at different prices in the market. |
Download the chart: –
If you want to download the chart please download the following image and PDF file:-
Conclusion:
Thus, The individual supply constitutes market supply. Both terms are components of supply. It refers to the different quantities of a commodity supplied at different prices in the market.
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