State whether the following statement are TRUE and FALSE. ii. Stock is the source of supply.

Chapter 5 - Producer's Behaviour Economics Solutions for Class 12 Commerce Economics


State whether the following statement are TRUE and FALSE.

ii. Stock is the source of supply.

Answer: Stock is the source of supply. - True

Explanation:

Yes, stock is the source of supply as supply is not possible without stock. Stock is the goods available with the seller. It includes both current stock and old stock. Accordingly, stock is the amount of goods that are available with the seller for sale at a given point of time. In other words, goods for supply is taken from stock. Hence, it is correct to say that stock acts as a source of supply.  

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