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Explain Any One Factor that Affects the Supply of a Commodity. - Economics

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Explain any one factor that affects the supply of a commodity.

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Solution

Price of the product is one of the factors which affects the supply of a commodity. When there is an increase in the price of the product and if it is more than the marginal cost of production, it enables a firm to earn more profit by selling at a higher price. Hence, there is an increase in the supply of a product.

Concept: Concept for Demand and Supply
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