Question

Explain any two causes of decrease in the supply of the commodity

Answer 1

Answer:

Two causes of decrease in supply are

(1) imposition of unit Tax:it raise cost.price remaining unchanged profits fall. this leads to decrease in supply

(2) Rise in prices of inputs:it raises cost.price remaining unchanged, profits fall.this leads to decrease in supply.

Answer 2

Two causes of decrease in supply are:

(i) Imposition of Unit Tax: It raises cost. Price remaining unchanged, profits fall. This leads to 'decrease' in supply.

(ii) Rise in Prices of Inputs: It raises cost. Price remaining unchanged, profits fall. This leads to 'decrease' in supply.

hope it helps......

_______________@divu