Question

Explain with reasons whether you agree or disagree with the following statement.
Increase and expansion in supply means the same.

Answer 1

No, I do not agree with this statement. Increase and expansion in supply are not the same. They are different.

Increase in Supply-

When we say there is an increase in supply or shift in the supply curve to the right then it means the entire supply curve has shifted to the right side. The supply increases when factors other than the price of the commodity changes. Such increase shifts the entire supply curve outward.

Expansion in Supply-

Expansion of supply shows the changes on the same supply curve. Here there is an upward movement along the same supply curve. The expansion of supply is rooted only in price of the commodity with all the other factors constant.