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प्रश्न
Explain three factors causing a shift of the supply curve.
उत्तर
- Technology: As technology advances, the cost of production decreases. As a result, the supply curve moves to the right. On the other side, if outdated and subpar technology is used in manufacturing. As production costs rise, supply will drop.
- Number of Firms: The more firms there are, the larger the market supply at the same price. If the number of enterprises falls, the market supply of the product will diminish.
- Price of inputs: If input prices fall, the cost of production falls, resulting in an increase in supply. In contrast, an increase in input costs will raise the cost of production, reducing market supply.
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संबंधित प्रश्न
Due to installation of a machine with latest technology, the cost of production has decreased. It will lead to ______.
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With the help of a diagram, define an increase in supply.
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With the help of a diagram, define a decrease in supply.
