Question

Statement 1: The supply of the commodity can also decrease when the price remains constant.

Statement 2: Due to rise in price of factor of production or inputs.

Options

• Both the statements are true.

• Both the statements are false.

• Statement 1 is true but statement 2 is false.

• Statement 1 is false but statement 2 is true.

Answer 1

Statement 1 is true but statement 2 is false.

Explanation:

The complete quantity of a commodity that a producer is willing and able to offer for sale at a particular price for a specific length of time is referred to as supply. The total quantity available for sale with the vendor is referred to as stock.