question_answer

Explain the distinction between 'Change in quantity supplied' and 'Change in supply'. Use diagram.

Answer:

Change in Quantity Supplied	Change in supply
When supply rises or falls because of change in the price of the commodity and other things remaining constant, is called change in quantity supplied.	When there is increase or decrease in supply because of change in factors other than price, it is called change in supply.
When supply of a commodity rises with rise in price, other things remaining constant is expansion in supply	When supply of a commodity rises due to change in factors other than price, it is called increase in supply.
Other things remaining constant, when supply of a commodity falls with fall in the price, it is termed as contraction in supply.	When supply of a commodity falls due to change in factors other than price, is called decrease in supply.
Change in quantity supplied is depicted by movement along the supply curve.	Change in supply is depicted by shift in supply curve.
Types of change in quantity: (a) Expansion of supply (b) Contraction of supply	Types of change in supply: (a) Increase in supply (b) Decrease in supply.