Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Production and Costs

Question:

Extension of supply occurs due to change in ______.

Options:

Own price of the commodity.

Goal of the firm.

Technique of production.

Number of firms.

Correct Answer:

Own price of the commodity.

Explanation:

The correct answer is Option (1) → Own price of the commodity.

Extension of supply refers to an increase in the quantity supplied of a commodity due to a rise in its own price, assuming other factors remain constant (ceteris paribus). It is shown as a movement along the supply curve, not a shift of the curve.

Other factors like the goal of the firm, technique of production, and number of firms cause a shift in the supply curve, not extension.