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प्रश्न
What are the reasons for upward sloping supply curve?
Give any two reasons for the upward slope of a supply curve.
Explain any two reasons for the upward slope of the supply curve.
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उत्तर
The law of supply states that there is a positive relationship between the price of a product and the quantity that producers are willing to supply. This is shown by an upward-sloping supply curve.
This happens mainly due to two reasons:
- Higher Prices Mean More Profit: When the price of a product increases, producers can earn more profit. This encourages them to produce and sell more of that product, assuming other factors remain constant.
- Increasing Cost of Production: As the production of goods increases, the marginal cost (cost of producing each extra unit) also increases. To cover this higher cost, producers are willing to supply more only at a higher price.
APPEARS IN
संबंधित प्रश्न
State the law of supply.
State with reason whether you agree or disagree with the following statement:
There is a direct relationship between price and quantity supplied.
The relationship between the price of a commodity and the supply of commodity is
What are the factors governing the elasticity of supply?
What are the functions of Entrepreneur?
State and explain the elasticity of supply.
Elucidate the Laws of Returns to Scale. Illustrate.
Other things remaining unchanged, change in supply due to increase in price is called ______.
Law of supply states that ______.
The Law of Supply states that other things being constant ______.
The producers prefer to supply more when prices are ______.
Explain the law of supply.
Price and Supply move in the same direction. Justify the statement.
With the help of a diagram state whether supply of a good is directly or inversely related to price?
What is supply function?
Which statement best expresses the Law of Supply?
What happens to the quantity supplied if the price of potatoes rises from ₹1 to ₹5 per kg, according to the supply schedule?
Why does the Law of Supply not apply to rare goods like antiques and old coins?
Which of these situations violates the "ceteris paribus" (other things being constant) condition for the Law of Supply?
What is the relationship between price and quantity supplied described by the Law of Supply?
Which of the following is an exception to the Law of Supply?
Which factor is assumed to remain unchanged under the Law of Supply?
What does the supply curve typically look like according to the Law of Supply?
Which real-life example best illustrates the Law of Supply?
