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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 competition4 Marks
Question
Explain the meaning of increase in supply and increase in quantity supplied with the help of a schedule.
OR
Distinguish between increase in quantity supplied and increase in supply.
✓

Answer

S. No
Basis
Increase in quantity supplied
Increase in supply
1.
Causes
Increase in quantity supplied is caused by increase in the price of the commodity alone, other things remaining the same.
Increase in supply is caused by change in factors other than price, i.e., fall in price of inputs, technological advancement, fall in taxes, fall in price of related commodities etc.
2.
Supply curve
Increase in quantity supplied of a commodity is shown by a upward movement along a supply curve, i.e., expansion of supply.
Increase in supply of a commodity is shown by rightward shift in the supply curve.
3.
Schedule
$P_X$ $Q.S_X$
1 2
2 4
3 6
4 8
$P_X$ Original $S_X$ New $S_X$
1 2 4
2 4 8
3 6 12

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