Question

why rise in cost of production leads to fall in supply?? class 11th ​

Answer 1

Answer:

When a firm's profits increase, it's more motivated to produce output (goods or services), since the more it produces the more profit it will earn. So, when costs of production fall, a firm will tend to supply a larger quantity at any given price for its output

Explanation:

Cost Structure

If the cost of any factor of production—labor, raw materials, equipment—decreases, the quantity that producers are willing (and able) to supply at a given price increases. ... Conversely, if production costs increase, the quantity supplied at a given price will decrease.

An increase in supply will cause a reduction in the equilibrium price and an inase in the equilibrium quantity of a good. ... An dcrease in supply will cause an increase in the equilibrium price and a decrease in the equilibrium quantity of a good. 1. The decrease in supply creates an excess demand at the initial price

I m in class 9 so plz check this ans according to me it's correct

hope this will help you

Answer 2

Answer:

when coat of production shoots up higher,thn more money is needed to manufacture a product.....

so to reduce cost manufacturers starts producing less.

hence, supply automatically gets reduced.