Distinguish between Expansion of Supply and Increase in Supply
|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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