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Distinguish between Expansion of Supply and Increa...
1.
Distinguish between Expansion of Supply and Increase in Supply.
Answer»
Expansion of Supply
Increase in Supply
Expansion of supply refers to a rise in the quantity supplied of a commodity solely due to a rise in its price.
When more quantity is supplied at the same price, it is called an increase in supply.
Expansion of supply takes place only due to a rise in the price of a commodity. The other factors remain constant.
Increase in supply takes place due to a favourable change in other factors. The price of the commodity remains the same.
Expansion in supply leads to an upward movement on the same supply curve due to a rise in price.
The supply curve shifts to the right of the original supply curve.
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