Question

Fill in the blank with appropriate alternative given below

An increase in supply means selling a ____________ amount at the same price.

Options

• larger

• smaller

• constant

• less

Answer 1

An increase in supply means selling a larger amount at the same price.

Explanation:

Increase in supply implies that a larger quantity is supplied at the same price. An increase in supply is caused by factors such as decrease in the factor prices, advancement in technology, favourable government policies, etc. The increase in supply is graphically shown in the following figure by parallel rightward shift of the supply curve.