Advertisements
Advertisements
प्रश्न
What effect does increased input prices have on the supply curve of a commodity? Draw a diagram to explain your answer.
थोडक्यात उत्तर
Advertisements
उत्तर
If the prices of inputs rise, then the cost of production will increase. This will reduce the profit margin of the seller. As a result, the supply curve will shift to the left, indicating a decrease in supply.
In the diagram
- SS is the original supply curve.
- S1S1 is the new supply curve.
- A leftward shift in the supply curve indicates a decrease in supply.
shaalaa.com
या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
