12th Class Economics Solved Paper - Economics 2012 Outside Delhi Set-I

  • question_answer
    Explain the difference between 'change in quantity supplied' and 'change in supply'. Use diagram.

    Answer:

    Change in quantity supplied means the changes in supply which are caused by the changes in the price of the good, other things remaining constant. In this case, when price increases quantity supplied also increases and when price falls quantity supplied also falls. In this case, a movement along the supply curve takes place upwards or downwards as the case may be. As shown below in the diagram, when price increases from OP to\[O{{P}_{2}}\], there is a movement on supply curve from point E to point F. On the other hand, when price falls from OP to\[O{{P}_{1}}\], there is a movement downward on the supply curve from point E to point G. When price   increases, Quantity supplied also increases and hen price falls, quantity supplied also falls. This is clear looking at the diagram (i).
    Change in supply. In case of change in supply, supply supplied increases or decreases due to factors other than price. These factors may be price of other commodities, state of technology, cost of production etc. In short, in the case of change in supply, the supply is either more or less at the same price.
                 In the case of change in supply, a shift takes place in the supply curve towards right when there is an increase in supply and towards left when there is a decrease in supply. As shown in the Diagram (ii), when supply curve shifts to \[{{S}_{1}}{{S}_{1}}\] supply falls from OQ to\[O{{Q}_{1}}\], On the other hand, when there is a shift in supply curve from SS to \[{{S}_{2}}{{S}_{2}}\] supply increases from OQ to\[O{{Q}_{2}}\]. In both the cases price remains the same, i.e., OP.


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