Change in Supply:

A change in supply on the other hand occurs when suppliers offer either more or less of a commodity for sale than before even though the market price has not changed. This produces a complete shift of the supply curve either to the right or the left.

a) Increase in Supply

This is when more of a product is offered for sale than before when the market price has not changed. An increase in supply completely shifts the supply curve to the right. For example, if at the same market price of Amala, suppliers offer more for sale than before then there is an increase in the supply of Amala. This will produce a complete shift in the supply curve of Amala as shown in Figure below. The initial supply curve was S0SO but as a result of the increase in supply, it has completely shifted to S1S1. From Figure , at the same market price of c5,000 per bag supply has increased from 40 to 50 bags.