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Question
What does the following table indicate?
| Price in (₹) | Quantity supplied in kg |
| 10 | 15 |
| 20 | 40 |
Options
An extension of supply
A contraction of supply
An upward shift of supply curve
A downward shift of supply curve
MCQ
Solution
An extension of supply
Explanation:
- Extension of supply refers to an increase in the quantity supplied in response to an increase in price, assuming other factors remain constant.
- In the given table, as the price increases from ₹10 to ₹20, the quantity supplied increases from 15 kg to 40 kg. This indicates an extension of supply, where suppliers are willing to offer more at higher prices.
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Movement Along the Supply Curve: Variations (Extension Or Contraction) of Supply
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RELATED QUESTIONS
A change in the price of a good ______.
An extension of supply curve of Product X occurs when ______.
Read the following statements carefully and choose the correct alternative:
Statement (1): Increase in supply results from a fall in the price, other things being equal.
Statement (2): Contraction in supply results from a rise in price, other things being equal.
What is extension in supply? Show it diagrammatically.
| Price (₹ Per unit) | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| Supply (units) | 0 | 0 | 2 | 4 | 6 | 8 | 10 | 12 | 14 |
What is meant by extension of supply?
What is meant by contraction of supply?
