Explain the meaning of increase in supply and increase in quantity supplied with the help of a schedule.
Increase in supply When supply of a commodity increases due to favourable changes in factors other than price, it is called increase in supply. In this situation, supply curve shifts to the right side.
It can be explained with the help of an imaginary schedule:
As, it is clear from the above schedule that supply is increasing at constant prices.
Increase in quantity supplied When supply of a commodity increases due to increase in price of a commodity and other factors remaining constant, it is called increase in quantity supplied. In this situation, supply curve moves upward.
It can be explained with the help of an imaginary schedule:
Here, we can see that quantity supplied is rising with rise in prices.