INCREASE IN SUPPLY
1-IT OCCURS DUE TO CHANGE IN OTHER FACTOR WHICH ARE EFFECTING THE SUPPLY(FOR EX- DECREASE IN PRICE OF INPUT,DECRASE IN THE RATE OF TAXATION BY GOVERENMENT,IMPROVEMENT IN TECHENOLOGY)
2-IN IT SUPPLY SCHEDULE IS AFFECTED
3-IN THIS SUPPLY CURVE MOVES OR SHIFT TOWARD RIGHT.
3-IN INCREASE IN SUPPLY MORE QUANTITY IS SUPPLIED AT AT A SAME PRICE.
EXTENSION IN SUPPLY
1-IT OCCURS DUE TO CHANGE IN THE PRICE OF A COMMODITY WHERE OTHER FACTOR REMANING CONSTANT.
2-IN IT SUPPLY SCHEDULE IS UNAFFECTED.
3-IN THIS SUPPLY CURVE MOVES TOWARD UPWARD DIRECTION.
4-IN THIS SUPPLY,SAME QUANTITY IS SUPLLIED AT A DIFFERENT PRICE.
prakashsha
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