Question

Explain the difference between a change in supply and a change in quantity supplied. Illustrate with a suitable example

Answer 1

Change in supply and change in quantity supplied occurs due to change in factors affecting supply. When price of the commodity supplied changes then there is a change in quantity supplied. There is a movement along the same supply curve. When factors other than the price of the commodity changes ,say price of the related goods,price of the inputs, technology etc.. there is a change in supply . The supply curve shifts either left or right.

Example for change in supply : if a new technology reduces the cost of gaming console production for manufacturers, according to the law of supply, the output of consoles will increase. With more output, the price of the consoles will likely fall creating greater demand in the market place and higher sales of consoles.

Example for change in quantity supplied: jonathan sells apples, jonathan has noticed that the competitors has increased the price of apple. So jonathan increases the quantity supplied for the same price inorder to increase profit.