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The theory of the firm under perfect competition — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsThe theory of the firm under perfect competition4 Marks
Question
Explain the distinction between "change in quantity supplied" and "change in supply." Use diagram.
✓

Answer

"Change in quantity supplied" means change in supply due to change In own price of the good.

Diagrammatically, it implies movement along the supply curve. When the producer moves from A to B, the rise in quantity of the good from OQI to OQz is on account of rise in price from OPI to OP2.

"Change in supply" means change in supply due to change in any factor; other than the own price of the good. Diagrammatically, it means shift of supply curve when producer moves from A to B; The price remains unchanged at OP while the supply curve shift from Sl to 52 When the producer shifts from $1to $2 the supply fall from OQI to OQ2.

 

 

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