ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -If the number of producers increases, then we can expect the supply curve to shift outward to the right, thus increasing the supply at every price. But this additional supply may result in a surplus, and the extra competition may cause prices to drop.

Detailed explanation-2: -An increase in the number of producers means increased competition, and eventually less-efficient producers will be driven out of the market, causing a decrease in supply.

Detailed explanation-3: -If the cost of production is lower, the profits available at a given price will increase, and producers will produce more. With more produced at every price, the supply curve will shift to the right, meaning an increase in supply.

Detailed explanation-4: -Key Takeaways. The law of supply says that a higher price will induce producers to supply a higher quantity to the market. Because businesses seek to increase revenue, when they expect to receive a higher price for something, they will produce more of it.

Detailed explanation-5: -If new sellers enter a market, the supply in that market tends to increase and if sellers leave a market, the supply in the market tends to decrease.