Distinguish between change in supply and change in quantity suppl… - Vidyadip

Question

Distinguish between change in supply and change in quantity supplied. Which of these causes a shift of supply curve?

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Answer

Difference between change in supply and change in quantity supplied:

S. No.	Basis	Change in supply	Change in quantity supplied
i.	Reason	It is caused by change in determinants other than own price of the commodity.	It is caused only by change in own price of the commodity, other determinants remaining constant.
ii.	Determinants	These include price of related goods, number of firms in the industry, goal of the firm, price of factors of production, state of technology, business confidence, government's policy.	Change in own price of the commodity is the only cause.
iii.	Representation	Diagrammatically, it is shown as a rightward and leftward shift in supply curve.	Diagrammatically, it is shown as a downward and upward movement on the same supply curve.

Change in supply causes a shift of supply curve.

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