distinguish between expenshion of supply and increase in supply with the help of diagram
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Answer:
Since we have seen many aspects of supply, let us now see distinctions between various subtopics of supply. In our coming posts we will also be looking into the distinctions between demand and supply.
Increase in Supply (Shift of the supply curve to the right)
Expansion of Supply
When we say there is an increase in supply or shift in the supply curve to the right then it means the entire supply curve has shifted to the right side.
The supply increases when factors other than the price of the commodity changes. Such increase shifts the entire supply curve outward.
Let us take an example of burgers. If the price of inputs goes down along with technological advancements then the producers will be encouraged to produce more burgers. This will result into increased production of burgers thereby shifting the supply curve of burgers to the right.
The diagram of increase in supply is shown through two supply curves.
Expansion of supply shows the changes on the same supply curve. Here there is an upward movement along the same supply curve.
The expansion of supply is rooted only in price of the commodity with all the other factors constant.
Suppose the price of the burgers goes up, then this will result in more supply of burgers. Here the only reason being the price (all the other factors are kept constant) will cause the variation (rise) in supply.
The expansion of supply is shown on a single supply curve
Explanation:
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