Advertisements
Advertisements
Question
Which of the following factor may cause decrease in supply?
Options
Fall in price of given product
Fall in price of factors of production
Decrease in number of firms
Expected fall in the price of given product in future
Solution
Decrease in number of firms
Explanation:
A decrease in the number of firms in the market would reduce the overall market supply, leading to a decrease in supply. This is because fewer firms would produce the product, reducing the quantity available for sale at any given price.
APPEARS IN
RELATED QUESTIONS
With the help of a diagram, explain the meaning of the increase in supply.
Explain three reasons for the rightward shift of the supply curve.
With price being same an increase in the price of inputs will lead to ______ in the supply curve.
If the government of India levies excise duty on sugar, in which direction will the supply of sugar shift?
Explain three determinants of a leftward shift of the supply curve.
What is meant by 'increase' in supply?
If a farmer grows rice and wheat, how will a decrease in the price of wheat affect the supply curve of rice?
How does the imposition of taxe affect the supply curve of a firm?
Discuss four factors which determine this phenomenon.
With the help of a diagram, define a decrease in supply.
