English

Define contraction in supply. - Economics

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Question

Define contraction in supply.

Definition
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Solution

When the price of a commodity decreases and, as a result, the quantity supplied also decreases while all other factors remain unchanged, it is referred to as a contraction of supply (or a decrease in quantity supplied).

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Chapter 5: Supply - Law of Supply and Price Elasticity of Supply - TEST YOURSELF QUESTIONS [Page 97]

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Frank Economics [English] Class 12 ISC
Chapter 5 Supply - Law of Supply and Price Elasticity of Supply
TEST YOURSELF QUESTIONS | Q 25. i. | Page 97
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