Question

Distinguish Between:

Increase in supply and Decrease in supply

Answer 1

Sr No.	Increase in supply	Decrease in supply
1.	When more quantity is supplied at the same price, it is called as increase in supply.	When less quantity is supplied at the same price, it is called as decrease in supply.
2.	Increase in supply takes place due to favourable change in factors other than price. The price of the commodity remains the same.	Decrease in supply takes place due to unfavourable changes in factors other than price. The price of the commodity remains the same.
3.	Increase in supply is shown by a shift in supply curve from left to right.	Decrease in supply curve is shown by a shift in supply curve from right to left
4.