Question

Extension of supply and Contraction of supply.

Answer 1

Extension of Supply	Contraction of Supply
(a) When the supply of a commodity rises only due to increase in the price of the commodity, then it is said to be extension in supply.	(a) When supply of a commodity falls only due to fall in the price of that commodity it is said to be contraction of supply.
(b) Extension in supply is shown by an upward movement to right on the same supply curve.	(b) Contraction is shown by the downward movement to left on the same supply curve.