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Question
What is meant by contraction of supply?
One Line Answer
Solution
When a fall in own price of a commodity leads to decrease in quantity supplied of a commodity, it is called contraction of supply.
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Movement Along the Supply Curve: Variations (Extension Or Contraction) of Supply
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RELATED QUESTIONS
What does the following table indicate?
| Price in (₹) | Quantity supplied in kg |
| 10 | 15 |
| 20 | 40 |
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?
