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Question
Give two differences between intended supply and actual supply.
Distinguish Between
Solution
The differences between intended supply and actual supply are as follows:
| Intended supply | Actual supply |
| Intended supply refers to the amount that producers are willing to produce and sell at a given price, assuming no constraints on production. | Actual supply is the amount that is actually produced and made available on the market, which can be affected by unforeseen factors like production issues or changes in costs. |
| Intended supply is based on planned production levels. | Actual supply may differ due to actual sales being higher or lower than what was anticipated due to changes in demand, or input prices. |
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Determinants of Supply
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