Question

difference between increase in supply and decrease in supply​

Answer 1

Answer:

increasing in supply means to supply more and more and decreasing in supply means to supply less and less

Answer 2

Answer:

I) Increase in Supply

Suppose there is a new technology available in the market. Supplier adopts such new technology. Due to adopting new technology supply increases and other facts remain the same. When supply increases, it results in an excess supply at the earlier equilibrium price.

II) Decrease in Supply

Now let us think of the opposite of the above situation. Suppose supplier does not adopt such new technology available in the market. Old technology which supplier uses is being obsolete. This will affect the efficiency of production level. So supply will decrease.