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Questions
Distinguish between Contraction of Supply and Decrease in Supply.
Distinguish between Decrease in Supply and Contraction of Supply.
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Solution
| Sr. No. | Contraction of Supply | Decrease in Supply |
| 1. | 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 unfavorable changes in other factors. |
| 2. | 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. |
| 3. |  |
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RELATED QUESTIONS
There are no exceptions to the law of supply.
Distinguish between Expansion of Supply and Increase in Supply.
Exceptions to the law of supply:
- Constant cost of production
- Constant technique of production
- Does not apply to agricultural goods
- No change in weather conditions
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Rise in the quantity supplied of a commodity due to a rise in its price, other factors remaining constant −
Find the odd word
Exception to law of supply -
Downward movement along the same supply curve should ______.
Assertion (A): The supply curve of labour slopes downwards.
Reasoning (R): After a certain point of time, when wage rate rises, the supply of labour (hours of work) tends to fall.
State with reason whether you agree or disagree with the following statement:
The supply curve of labour is backward bending.
State with reason whether you agree or disagree with the following statement:
There are many exceptions to the law of supply.
Identify and explain the concept from the given illustration:
Mahesh supplied (sold) more fruits at a comparatively low price due to the perishable nature of fruits.
- Assertion (A): Perishable goods are the exception to the Law of Supply.
- Reasoning (R): Perishable goods are sold in greater quantities only at higher prices.
Law of supply does not apply to ______.
The supply of perishable goods like milk, vegetables, fish is ______.
Discuss any two exceptions to the law of supply.
State one exception to the law of supply.
