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Distinguish between Contraction of Supply and Decrease in Supply - Economics

Distinguish Between

Distinguish between Contraction of Supply and Decrease in Supply

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Solution

Contraction of Supply Decrease in Supply
Contraction of supply refers to a fall in the quantity supplied, due to a fall in the price of a commodity, other factors remaining constant. Decrease in supply refers to a fall in the supply of a given commodity due to unfavourable changes in other factors.
It is shown by a downward movement on the same supply curve. It is shown by a shift in the supply curve from right to left.
Concept: Exceptions to the Law of Supply
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APPEARS IN

Balbharati Economics 12th Standard HSC Maharashtra State Board
Chapter 4 Supply Analysis
Exercise | Q 4. (3) | Page 45
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