Final answer:
The 'time of supply' in an invoice context signifies when a supply transaction is recognized for tax purposes, which affects when the supplier should charge tax. Economics differentiates between 'supply' (the supply curve relationship) and 'quantity supplied' (a specific point on the curve). An excess payment in an invoice might additionally affect the valuation of the supplied goods.
Step-by-step explanation:
In the context of the invoice issued for ₹5,000, the time of supply would generally refer to the point at which the supply transaction is considered to have taken place for tax purposes. It is the moment when the supplier is liable to charge the tax, and this can be when the invoice is issued, the payment is received, or the goods are delivered, whichever comes first. If there is an amount received more than the invoice amount, it could lead to additional considerations regarding the valuation of the supply.
The concept of supply in economics is distinct from quantity supplied. The former is the relationship between a range of prices and the quantities that are provided at those prices. This relationship is often depicted as a supply curve on a graph. On the other hand, the quantity supplied refers to a specific single point on that curve, corresponding to a particular price.
To illustrate, if the aforementioned invoice causes a change in the cash flow which in turn affects the business's pricing strategies or market behaviour, it might shift the supply curve or alter a specific point on the curve, that is the quantity supplied.