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When Does 'Decrease' in Supply Take Place? - Economics

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Question

When does 'decrease' in supply take place?

Solution

A decrease in supply is caused by adverse change in the factors other than own price of the good. It includes fall in efficiency of technology and increase in factor prices. Diagrammatically, it is shown as a backward shift in the supply curve.

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2015-2016 (March) Delhi Set 3

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