Supply Analysis — Economics STD 12 Commerce / Arts — Question

1. When the supply of a commodity rises only due to the rise in the price of the commodity, then it is said to be extension in supply.
2. Extension of supply is a case of variation in supply.
3. Rise in price is the only factor due to which supply expands / extends.
4. When there is extension in supply, there is an upward movement on the same supply curve.

Increase in Supply :

1. The supply is said to increase if at the same price more is supplied.
2. Increase in supply is a case of changes in supply.
3. Supply increases due to
   (1) fall in cost of production
   (2) improvement in transport facility
   (3) introduction of modern technology
   (4) government subsidies
   (5) more imports etc.
4. When there is an increase in supply, the supply curve shifts to the right of original supply curve.