Sunday, June 15, 2014

DIFFERENCE BETWEEN CHANGE IN SUPPLY AND CHANGE IN QUANTITY SUPPLIED

CHANGE IN SUPPLY A change in supply is a change in quantity a producer is able to offer for market due to changes in other factors that affect supply other than a change in price of the commodity. This means that the quantity change without a price change.
CHARACTERISTICS
¤ A change in supply is caused by factors that affect supply except price e.g. Cost of production, war e.t.c
¤ A change in supply is express as a shift from one supply curve to another.
¤ A change in supply does not neccessarily obey the law of supply.
¤ A change in supply is a complete behavioural change in the supplier towards the commodity even when the price did not change.
CHANGE IN QUANTITY SUPPLIED
A change in quantity supplied is the change in the amount that is supplied of a commodity by a producer in the market due to a change in the price of the commodity.
CHARACTERISTICS
¤ A change in quantity supplied is caused by a change in price alone.
¤ A change in quantity supplied is express as a shift on a single supply curve.
¤ A change in quantity supplied obey the law of supply.
¤ A change in quantity supplied does not indicate a behavioural change in the consumer rather only a reaction to a change in price in the market.

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