Advertisements
Advertisements
प्रश्न
What is a supply schedule? What is the effect on the supply of a good when Government gives a subsidy on the production of that good? Explain.
उत्तर
Supply schedule is a tabular presentation representing different quantities of a commodity offered for sale corresponding to the different prices at which these quantities are offered for sale. The following table presents a supply schedule.
|
Price (in Rs) |
Quantity (in units) |
| 1 | 5 |
| 2 | 10 |
| 3 | 15 |
| 4 | 20 |
| 5 | 25 |
The diagrammatic presentation of the effect on the supply gives a subsidy on the production of that good is as follows.
Suppose that a firm is facing price of OP1. In the diagram, LAC1 and LMC1 are the long run average cost curve and long run marginal cost curve respectively. In the lower panel we represent the supply curve. Now, suppose unit subsidy is given by the government equal to Rs ‘v’ per unit of output. This will result in a reduction in the cost of production. As a result, the cost curves shifts rightwards (downwards) to LMC2 and LAC2. The magnitude of the shift in the cost curves is equal to Rs v. Now, as the supply curve is a rising part of LMC, so the supply curve in the figure (ii) also shifts rightwards from S1 to S2. This implies that the firm will now supply greater units of output.
APPEARS IN
संबंधित प्रश्न
If price falls, the supply curve will shift to the left.
Examine the effect of (a) fall in the own price of good X and (b) rise in tax rate on good X, on the supply curve. Use diagrams.
Given saving curve, derive consumption curve and state the steps in doing so. Use diagram.
When does ‘increase’ in supply take place?
Explain how technological progress is a determinant of supply of a good by a firm.
How does change in per unit tax influence the supply of a good by a firm? Explain.
Distinguish between the following.
Percentage method of measuring the elasticity of supply and Geometric method of measuring the elasticity of supply.
Write short answer for the following question :
Explain the increase in supply and decrease in supply.
Distinguish between :
Percentage method of counting elasticity of demand and Geometric method of counting elasticity of demand.
Give reasons or explain the following statements
The relationship between price and supply is positive.
Answer with reasons whether you agree or disagree with the following statement:
The supply curve slopes downward from left to right.
Fill in the blank with appropriate alternative given below
Total Revenue ÷ Number of units Sold = ________________ .
State whether the following statement is TRUE and FALSE.
Stock is the source of supply.
State whether the following statement is TRUE and FALSE.
Supply is indirectly related to price.
State whether the following statement is TRUE and FALSE.
Supply for perishable goods is inelastic.
Give reason or explain:
Supply is directly related to price.
Write short note on the following:
Labour supply curve.
Do you agree or disagree with the following statement? Give reason.
The backward slopping supply curve shown as inverse relationship between supply of labour and wage rate.
State with reason whether you 'agree' or 'disagree' with the following statement.
Supply depends on several factors.
