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प्रश्न
Explain three determinants of a leftward shift of the supply curve.
Point out various factors which lead to a decrease in supply.
उत्तर
- Increase in government tax: As tax rates rise, so does the expense of production. As supply declines, the supply curve shifts to the left.
- Rise in prices of inputs: As the price of elements of production rises, so does the cost of production. Thus, manufacturers are willing to supply less at the current price. Consequently, the supply curve will move to the left.
- Rise in prices of other goods: As prices of other goods rise, the firm is encouraged to raise production of other goods in order to increase profits. As a result, the production and supply of the specified commodities would decrease.
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संबंधित प्रश्न
With the help of a diagram, explain the meaning of the increase in supply.
What is meant by shift in supply?
With price being same an increase in the price of inputs will lead to ______ in the supply curve.
Due to installation of a machine with latest technology, the cost of production has decreased. It will lead to ______.
If the government of India levies excise duty on sugar, in which direction will the supply of sugar shift?
Define a decrease in supply.
What causes a downward movement along a supply curve?
What is meant by 'increase' in supply?
How does the imposition of taxe affect the supply curve of a firm?
With the help of a diagram, define a decrease in supply.
