Question

Explain increase decrease in supply with
the help of diagram

Answer 1

Answer:

Meaning of increase and decrease in supply:

2) A decrease in supply: It is due to an increase in input prices, increases in unit tax, increases in prices of related goods and the price of the good remaining constant. Hence, an increase in the price of substitute goods will shift the supply curve to the left.

Answer 2

Answer:

A decrease in supply: It is due to an increase in input prices, increases in unit tax, increases in prices of related goods and the price of the good remaining constant. Hence, an increase in the price of substitute goods will shift the supply curve to the left.