Movement along the Supply Curve
Extension of supply
It refers to the increase in supply of a commodity with the rise in price, other factors remaining unchanged.
Contraction of supply
It refers to the fall in supply of a commodity when its prices fall, other factors remaining unchanged.
Shift in Supply Curve
When factors other than price affect the supply it results in the shift of supply curve. The supply curve may move inward or outward.
A shift of supply curve outwards to the right will mean an increase in supply at the same price level.
When the supply curve moves inwards to the left it means that less is being supplied at the same price level.
