Question

Distinguish Between:

Increase in supply and Decrease in supply

Distinguish between increase 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 an increase in supply.	When less quantity is supplied at the same price, it is called a decrease in supply.
2.	Increase in supply takes place due to a 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 the supply curve from left to right.	Decrease in the supply curve is shown by a shift in the supply curve from right to left.
4.