Increase in supply is a situation when firms are willing to supply more of a commodity at its existing price. It may be owing to cheaper availability of inputs or due to technological improvements causing reduction in cost of production, or other such factors. While extension in supply of a commodity occurs as a result of rise in price of the commodity. Increase in supply means that due to reduction of price of resources, advancement in technology, whole supply curve shifts to the right, showing that more quantity is supplied than before at each decline in price of the commodity.
