ICSE Class 10 Answered
Mention any two reason for the rightward shift of the supply curve
Asked by indojitkabiraj2004 | 20 Apr, 2019, 09:56: PM
Expert Answer
When the supply of a commodity changes due to factors other than price, it is called shift in the supply curve. The supply curve shifts to right (downward) indicating increase in supply or it shifts to the left (upward) indicating decrease in supply.
Following two point’s causes rightwards shift of the supply curve:
1. Fall in prices of inputs:
Fall in the prices of inputs causes fall the cost of production which results in increase in supply.
2. Improvement in Technology:
Any improvement in production technology causes fall in the cost of production which shifts the marginal cost curve down. As a result, the supply curve shifts to the right.
Answered by Christina | 22 Apr, 2019, 09:32: AM