2/21/2024 Under perfect competition, a rightward shift of the market supply curve could be caused byRead Now![]() The amount of commodity that the producers or suppliers are willing to offer at the marketplace can change even in cases when factors other than the price of the commodity change. This movement is known as a contraction of the supply curve. 10, the amount of quantity supplied falls from 20,000 liters to 10,000 liters, and there is another movement in the supply curve from point B to point A. ![]() This movement is known as an extension of the supply curve. 30, the amount of quantity supplied rises from 20,000 liters to 30,000 liters, and there is a movement in the supply curve from point B to point C. 20 is the original price of milk per liter and 20,000 liters is the original quantity of supply. Extension in a supply curve is caused when there is an increase in the price or quantity supplied of the commodity while contraction is caused due to a decrease in the price or quantity supplied of the commodity. ![]() ![]() The movement in supply curve can be of two types – extension and contraction. In simple words, movement along a supply curve represents the variation in quantity supplied of the commodity with a change in its price and other factors remaining unchanged. ![]()
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