Increase and decrease in supply:

Fig: Increase and decrease in supply

When there is a change in supply due to changes in any of the factors other than price, the supply curve is shifted upward or downward. (E.g.) when the technology improves, for the same price an increased quantity will be supplied. This is called increase-in-supply. If supply increases from Q0 to Q2, as shown in the figure, then, it is an increase in supply. Then, the supply curve, S0S0, shifts downward or away from the origin, i.e., S2S2. Similarly, due to flood, fire, etc. for the same price, the quantity supplied will be less resulting in decrease-in-supply. The quantity supplied decreases from Q0 to Q1 and the supply curve S1S1moves upward