What is the difference between the supply and the quantity supplied of a product, say milk? Explain in words and show the difference on a graph with the supply curve for milk.

Before analyzing the differences, it is important to understand the definitions of supply and quantity supplied. Supply refers to the total amount of a good or service that producers are willing and able to sell at various prices during a specific period. It is represented by a curve or a schedule, which shows the different quantities that can be produced and sold at diverse price levels. Quantity Supplied, on the other hand, is the amount of a good or service that producers are willing and able to sell at a specific price during a specific period. It is simply a point on the supply curve, representing the amount offered at a single price level.

The main difference between supply and quantity supplied is that supply represents the relationship between price and the quantity that producers are willing to offer, whereas quantity supplied represents the amount offered at a specific price level. To understand this better, think of the supply curve as a graph where each point reflects a different price-quantity combination. The curve as a whole demonstrates how the quantity supplied changes as the price varies. In contrast, a single point on the curve represents the quantity supplied at a particular price, which is the quantity supplied.

To illustrate the difference between supply and quantity supplied, let's create a graph showing the hypothetical supply curve for milk. On the horizontal axis, we can represent the quantity of milk supplied (in gallons), and on the vertical axis, we can represent the price of milk (in dollars). The supply curve will be an upward-sloping line, indicating that as the price increases, producers are willing to offer more milk for sale.

On the graph, the supply curve represents the overall supply of milk at various prices. Let's now mark two different points on the supply curve, A and B, to demonstrate the concept of quantity supplied. Point A corresponds to a specific price and quantity, say, for instance, \(3 per gallon and 5,000 gallons supplied. Point B, on the other hand, represents another price-quantity combination, for example, \)4 per gallon and 6,000 gallons supplied. Here, Point A and Point B reflect the quantity supplied at specific price levels (\(3 and \)4, respectively), whereas the whole supply curve demonstrates the complete relationship between price and quantity supplied for milk. In summary, the supply curve represents the supply of milk at various prices, while the quantity supplied is the amount offered at a specific price level (shown by a single point on the curve).