Balbharati solutions for Economics HSC 12th Standard Maharashtra State Board
Chapter-4 Supply Analysis [Latest edition] [Latest edition]
2. Expansion of Supply and Increase in Supply
Expansion of Supply | Increase in Supply |
Expansion of supply refers to a rise in the quantity supplied due to a rise in the price of a commodity, other factors remaining constant. | Increase in supply refers to rise in the supply of a given commodity due to favourable changes in other factors such as fall in the price of inputs, fall in tax rates, technological upgradation etc., while price remains constant. |
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. |
