Advertisements
Advertisements
Questions
Mention two factors which cause decrease in supply.
Discuss four factors which determine the decrease in supply phenomenon.
Solution
A decrease in supply may be caused by any of the following reasons:
- Rise in input prices results in an increase in the cost of production.
- Rise in prices of other goods makes their production more profitable. It becomes less profitable to produce the given commodity.
- Technology becoming outdated causes an increase in the cost of production and hence a decrease in supply.
RELATED QUESTIONS
Briefly explain any three factors that affect supply of a commodity.
Explain the determinants of supply?
When the government gives tax ______ than the supply of goods will increase.
When producers expect price rise in the future, they would like to ______ the present supply of their commodities.
Increase in the tax on a commodity will lead to ______ in the supply of the commodity.
Point out two factors that lead to increase in supply.
Explain four factors on which the supply of a commodity depends.
Explain five determinants of shift in supply curve.
Explain any three factors other than price which determine supply in the market.
State any two factors determining supply.
