Analyse the data given below and identify the impact of the same on the supply _____:
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There is an increase in supply There is a decrease in supply There is extension of supply There is contraction of supply |
There is an increase in supply |
The correct answer is option 1: There is an increase in supply There is an increase in supply even when the price is same. This implies there is impact of other factors than price in the supply. Thus it is an example of increase in supply. |