Question
Define supply. Distinguish between "increase in supply" and "extension in supply".
✓
Answer
Supply refers to the quantity of commodity that the producers offer for sale at different prices.
Difference between increase in supply and extension in supply
Difference between increase in supply and extension in supply
| Increase in supply | Extension in supply |
| Occur due to change in factors other than price of the commodity. | Occur due to increase in the price of the commodity. |
| Shown by rightward shift in the supply curve. | Shown by upward movement along the supply curve. |
Diagrammatic representation: | Diagrammatic representation: |
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