distinguish between increase and extension of supply.
- Difference (A)
- When supply of a commodity rises onlydue to price it is called EXTENSION of supply and when supply of a commodity rises due to factors other than price (say for e.g rise in factors of production) its called Increase in supply.
- Difference (B)
- Since price is influenced under EXTENSION of supply there is NO shift in supply curve and is possible only when price increases thus as a result there is only rightward movement along the supply curve
- WHEREAS under INCREASE in supply the entire supply curve shifts rightward as there is NO INFLUENCE OF PRICE
- YOU CAN SHOW THIS DIFFERENCE IN A GRAPH