Question
Differentiate between increase in supply and expansion in supply [increase in quantity supplied).
✓
Answer
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S. No.
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Basis
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Increase in Supply
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Expansion in Supply
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1.
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Meaning
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An increase in supply means that producers now supply more at a given price level.
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It states that rise in quantity supplied due to the rise in price of the commodity.
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2.
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Cause
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(i) Fall in the price of remuneration of factors of production.
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It is caused by rise in price of the commodity.
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(ii) Fall in the prices of other goods
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(iii) Improvement in technology.
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(iv) Change in objective of producer (increase the supply at the same rate).
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(v) Taxation policy of government falls.
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3.
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Schedule
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4.
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Diagram
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 |
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