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Question
Other things remaining unchanged, change in supply due to increase in price is called ______.
Options
Contraction of supply
Expansion of supply
Decrease in supply
Increase in supply
Solution
Other things remaining unchanged, change in supply due to increase in price is called Expansion of supply.
Explanation:
When the price of a commodity increases and other factors remain unchanged, the quantity supplied typically increases as well. This increase in quantity supplied in response to a price increase is referred to as an expansion of supply.
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