ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The supply of a good increases if the price of one of its complements in production rises. 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.

Detailed explanation-2: -Answer: False The supply of apples is simply a list of quantity supplied of apples at each possible price level. Thus, a change in the price of apples doesn’t affect supply but will affect quantity supplied. Visually this is seen as a movement along the supply curve, not a shift of the supply curve.

Detailed explanation-3: -Essentially, a change in supply is an increase or decrease in the quantity supplied that is paired with a higher or lower supply price. A change in supply can occur as a result of new technologies, such as more efficient or less expensive production processes, or a change in the number of competitors in the market.

Detailed explanation-4: -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.