Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Firms under Perfect Competition

Question:

Analyse the data given below and identify the impact of the same on the supply _____:

Price (rs) Quantity
10 4
10 8

 

Options:

There is an increase in supply

There is a decrease in supply

There is extension of supply

There is contraction of supply

Correct Answer:

There is an increase in supply

Explanation:

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.