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Showing posts with the label Change in supply/ Shifts in supply curve.

Change in supply/ Shifts in supply curve.

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    Learning Contents:                                                               ·              Increase in   supply ·              Decrease in   supply    Introduction As studied in previous post related to the determinants of supply that states, it is not only the price which cause change the supply for the commodity but in the real world there also exist other factors such as price of related goods, objective of the firm, government policies, technology changes, etc. that affect the supply for the commodity. Change in supply indicates that supply for the commodity changes due to change in other factors keeping the price of the commodity constant. In other words, when supply for the commodity increases or decreases due to change in other factors or determinants of supply, other than the own price of the commodity is called as ‘ shifts in supply curve’. Shifts in supply curve are also known as change in supply. Such shifts in supply curve may be either increase in sup