Advertisements
Advertisements
Questions
Give two reasons for the positive slope of the supply curve.
Explain why more is supplied at a higher price.
Solution
Positive slope of the supply curve shows the direct relationship between price and quantity supplied.
Two reasons for the positive slope of the supply curve are
- An increase in price, other things being equal, increases the profit margin and hence quantity supplied.
- An increase in price attracts the new firms to enter the market to produce this commodity so as earn profits.
APPEARS IN
RELATED QUESTIONS
Draw a supply curve.
The continuous rain and lack of fresh supply have affected the availability of tomatoes in India during June - July 2023. What will be the impact on the supply curve for tomatoes?
In case of ______, supply curve is a vertical straight line parallel to the Y-axis.
Identify the elasticities of the supply curves given below.
What will the following cause
| Price in Rs. | Quantity supplied in Kgs. |
| 10 | 15 |
| 20 | 40 |
When a straight-line supply curve cuts the y-axis, the elasticity of supply will be ______.
Draw supply curve of the following situation:
Elasticity of supply = ∞
If the number of firms producing a particular commodity increases, the market supply of that commodity will be ______.
The following diagram shows the supply curve of three commodities. Rank their price elasticity.
Study the graph and identify the supply curves S1 and S3 with respect to its time elements.
Define supply curve.
How does technological progress affect the supply curve of a firm?
How does a increase in the number of firms in a market affect the market supply curve?
Explain the following diagram.
