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The theory of the firm under perfect competition — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsThe theory of the firm under perfect competition3 Marks
Question
Explain the meaning of ‘increase in supply’ and ‘increase in quantity supplied’ with the help of a schedule.
✓

Answer

Increase in supply:It refers to rise in supply of a good due to change in a factor other than the own price of the good. For example, in the schedule own price of the good remaining the same at Rs. 10 per unit, supply rises from 100 units to 150 units.
Price (Rs. per Unit) Supply (Units)
10 100
10 150
Increase in quantity supplied:
It refers to rise in supply of a good due to rise in own price of he good only. For example in the schedule own price rises from Rs.10 to Rs. 11 per unit and as a result, supply rises from 100 units to 200 units.
Price (Rs. per Unit) Supply (Units)
10 100
11 200

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