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प्रश्न
Distinguish between contraction in supply and increase in supply of a commodity.
फरक स्पष्ट करा
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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Shift in Supply Curves
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संबंधित प्रश्न
The following supply curve shifts from SS to S1S1. It may be due to ______.
Match the following and select the correct option.
| Column I | Column II |
| (i) Expansion of supply | (A) Prices are expected to fall in future |
| (ii) Decrease in supply | (B) Fall in prices |
| (iii) Contraction of supply | (C) Prices are expected to rise in future |
| (iv) Increase in supply | (D) Rise in prices |
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Point out important factors that lead to increase in supply.
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