Movement along a supply curve
It caused by change in own price of commodity are studies as
extention of supply and contraction of supply.
(i)
Extenton of supply:-is a situationin which
supply of commodity increase due to increase in own price of commodity.
(ii)
Contraction of supply:-is a situation on which
supply of a commodity decrease due to fall in price of commodity.
Shift of supply curve:-Bring supply of a commodity change in
due to a change in other factor then its prices this situation is called shift
of suuply curve.
There are two type of shift in supply curve:-
(i)
Increase in supply.
(ii)
Decrease in supply.
Increase in supply:-When supply of a commodity increase due
to other factor then its price this situation is called Increase in supply.
Causes for increase in supply:-
(i)
Improvement in state of technology.
(ii)
Incfrease in no of firm in the market.
(iii)
Goods of the firm shift from profit maximum to
size maximise.
(iv)
Faverirable change in government policy.
(v)
Reduction of factor price.
(vi)
Fall in cost of production.
(vii)
Decrease in price of subsituted goods.
Decrease in supply:-when the supplied of a commodity
Decrease due to other factor then its prices this situation os called decrease
in supply.
Causes of decrease in supply:-
(i)
Fall in state of technology.
(ii)
Increase in price of subsitut goods.
(iii)
Fall in no. of firm in a market.
(iv)
Increase in factor price.
(v)
Tax impoz by government.
(vi)
Fall in no. of firm in a market.
(vii)
Change in good of sell maximisation and profit.
(viii)
Increase in cost of production of the firm.
Class XII Exam Results 2013 - Likely to be announced on 27th May 2013 at 10:00 AM IST