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What will be the effect of raising production subsidies on the supply of a commodity? - Economic Applications

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प्रश्न

What will be the effect of raising production subsidies on the supply of a commodity?

विकल्प

  • Downward movement along with the supply curve.

  • Leftward shift of supply curve.

  • Rightward shift of supply curve.

  • Upward movement along the supply curve.

MCQ

उत्तर

Rightward shift of supply curve.

Explanation:

Raising production subsidies reduces the cost of production for suppliers, which encourages them to produce and supply more of the commodity at the same price levels. A rightward shift of the supply curve represents this increase in supply.

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Shift in Supply Curves
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अध्याय 3: Theory of Supply - QUESTIONS [पृष्ठ ७०]

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गोयल ब्रदर्स प्रकाशन Economic Application [English] Class 10 ICSE
अध्याय 3 Theory of Supply
QUESTIONS | Q 47. | पृष्ठ ७०
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