ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -An improvement in technology that reduces the cost of production will cause an increase in supply. Alternatively, you can think of this as a reduction in price necessary for firms to supply any quantity. Either way, this can be shown as a rightward (or downward) shift in the supply curve.

Detailed explanation-2: -The correct answer to the given question is option D. the law of demand. As per the law of demand, the price of a good or service usually has an inverse relationship with the quantity demanded. Thus, consumers tend to buy less of a good or service when its price increases and vice-versa.

Detailed explanation-3: -The supply a good decreases if the price of one of its complements in production falls. Resource and input prices influence the cost of production. And the more it costs to produce a good, the smaller is the quantity supplied of that good. Expectations about future prices influence supply.

Detailed explanation-4: -The demand for a good increases or decreases depending on several factors. This includes the product’s price, perceived quality, advertising spend, consumer income, consumer confidence, and changes in taste and fashion.