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Question
Distinguish between Expansion of Supply and Increase in Supply.
Solution
| Points | Expansion of Supply | Increase in Supply |
| Quantity | 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. |
| Factors | Expansion of supply takes place only due to a rise in the price of a commodity. The other factors remain constant. | An increase in supply takes place due to a favourable change in other factors. The price of the commodity remains the same. |
| Supply Curve | 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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