Question

Assertion (A) : Fall in input prices leads to increase in supply of goods. Reasons (R) : Increase in supply is when supply rises due to a factor other than the own price of the good​

Answer 1

Answer:

A is correct but R is false

Answer 2

Answer:

A is correct but R is false

Explanation:

• A higher price, according to the law of supply, stimulates producers to supply a larger quantity to the market.
• A market's supply can be represented as an upward sloping supply curve that demonstrates how the quantity supplied responds to different prices over time.
• Businesses will create more when they expect to earn a higher price because they want to improve their revenue.
• Firms have an incentive to supply more as prices rise since selling the goods generates additional money (income). There is a shift along the supply curve as the price changes, for example, a higher price causes a higher amount to be delivered.