New RBI Grade B Notification Out - 94 Vacancies - Prepare with Us!

    Register

    Question

    Supply curve represents the relationship between product price and quantity of product that a seller is willing and able to supply. Shifting of supply curve rightward would imply which of the following?

    A Increase in profits Correct Answer Incorrect Answer
    B Decrease in profits Correct Answer Incorrect Answer
    C Reduction in quantity supplied Correct Answer Incorrect Answer
    D Reduction in price of its goods Correct Answer Incorrect Answer

    Solution

    · Supply curve of a firm tends to shift rightwards on account of enhanced profitability. Similarly it shifts leftwards when profit is reduced.
    · Technological progress shift the curve rightwards, similarly reduced input cost and reduced unit tax would give the same output.
    [endif]-->

    Practice Next