An increase in supply means that

Analyze the question The question asks what "an increase in supply" means. In economics, this is a technical term, so we must separate it from an "increase in quantity supplied."

Explain the concept

• Increase in supply: the whole supply curve shifts to the right. This is caused by factors other than the price of the good itself, such as improved technology, lower production costs, subsidies, or more producers. At each given price, producers now offer more for sale.
• Increase in quantity supplied: a movement along the same supply curve, caused only by a change in the good's own price.
• Decrease in supply: a leftward shift of the curve.

Check each option

• A. More is sold at different prices: this describes a movement along the curve (price changes, quantity changes), which is a change in quantity supplied, not a change in supply.
• B. More is sold at the same price: this matches a rightward shift. At the same price, a greater quantity is now supplied. ✔
• C. A leftward shift of the supply curve: this is a decrease in supply, so it is wrong.
• D. A movement along the supply curve: this is a change in quantity supplied, not a change in supply, so it is wrong.

Answer: B. An increase in supply means more is offered and sold at the same price.

Exam tip Remember: "Shift = Supply, Slide = Quantity supplied."

• The curve shifts (right for increase, left for decrease) → change in supply, caused by non-price factors.
• You slide along the curve → change in quantity supplied, caused by price.

WASSCE often tests this distinction, so watch the wording carefully.