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The theory of the firm under perfect competition — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsThe theory of the firm under perfect competition6 Marks
Question
Distinguish between a change in supply and change in quantity supplied.
OR
Explain the distinction between "Change in quantity supplied” and “Change in supply”. Use diagram.
✓

Answer

S. No
Basis
Change in Quantity Supplied/ Movement along a supply curve
Change in supply/ Shift in supply curve
1.
Causes
Change in quantity supplied is caused by change in price of the commodity alone, other factors remaining constant.
Change in supply is caused by factor other than the price of the commodity, i.e., change in price of related commodities or change in the state of technology or change in price of inputs etc.
2.
Curve
Change in quantity supplied of a commodity is denoted by the 'movement along a supply curve'.
  • Upward movement along a supply curve denotes 'expansion of supply'.
  • Downward movement along a supply curve denotes 'contraction of supply'.
 
Change supply is denoted by a "shift of the supply curve".
  • Rightward shift in supply curve denotes ‘increase in supply'.
  • Leftward shift in supply curve denotes decrease in supply.
3.
Diagram

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