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प्रश्न
Distinguish between contraction in supply and increase in supply of a commodity.
उत्तर
| Basis | Contraction in Supply | Increase in Supply |
| 1. Meaning | When a lesser quantity is supplied at a lower price, it is called contraction of supply or decrease in quantity supplied. | When a larger quantity is supplied at the same price, it is called increase in supply. |
| 2. Cause | It occurs due to fall in commodity's own price, other factors remaining unchanged. | It results from changes in factors other than commodity's own price, such as fall in factor prices, fall in prices of other goods improvement in technology etc. |
| 3. Effect on supply curve | It results in downward movement along a supply curve. | It results in rightward shift of supply curve. |
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संबंधित प्रश्न
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