Question

Explain the difference between a change in supply and a change in quantity supplied. List the factors that change supply and shift the supply curve

Answer 1

If we talk in very simple terms then there is difference between supply and quantity supply

if the factor present is only price then there is change in the quantity supplied

it is shown by the movement on the supply curve

If we talk about supply curve then in this other than price factors are involved like

• expectation level of sellers in the market
• presence of new technology in the market
• taxes and subsidies given by the government etc

This causes shift of the supply curve either rightwards or leftwards shown below in the graph