Why can supply be more than production, but can not be more than stock?
Answer»
Supply of a commodity can be equal to or less than the total stock plus production but not more than that.
For example, during a year a firm produces 100 units. The past stock is 30 units. So, the total sellable stock becomes 130 units. This means that the seller can supply maximum 130 units but not more than that.
Hence, the supply can be more than production but not more than the stock.