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Distinguish between Expansion of Supply and Increase in Supply - Economics

Distinguish Between

Distinguish between Expansion of Supply and Increase in Supply

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Solution

Expansion of Supply   Increase in Supply
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.
Expansion of supply takes place only due to a rise in the price of a commodity. The other factors remain constant. Increase in supply takes place due to a favourable change in other factors. The price of the commodity remains the same.
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.
Concept: Exceptions to the Law of Supply
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APPEARS IN

Balbharati Economics 12th Standard HSC Maharashtra State Board
Chapter 4 Supply Analysis
Exercise | Q 4. (2) | Page 45
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