ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -A decrease in demand will cause the equilibrium price to fall; quantity supplied will decrease. An increase in supply, all other things unchanged, will cause the equilibrium price to fall; quantity demanded will increase. A decrease in supply will cause the equilibrium price to rise; quantity demanded will decrease.

Detailed explanation-3: -As a price rises, two things occur: There is an increase in quantity supplied (a movement along the supply curve) There is a decrease in quantity demanded (a movement along the demand curve)

Detailed explanation-4: -What caused the supply curve for digital cameras to keep moving to the right during the early 2000s? Improved technology made them cheaper to produce.