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When supply falls due to factors other than own price of the commodity it indicates
Contraction in supply
Decrease in supply
Extension in supply
None of these
- Contraction in supply: This occurs when the supply of a commodity decreases due to an increase in its own price. It is a movement along the supply curve, not relevant here.
- Decrease in supply: This refers to a situation where the supply of a commodity falls due to factors other than its own price, such as changes in production costs, technology, or regulations. This causes a leftward shift of the supply curve.
- Extension in supply: This happens when the supply of a commodity increases due to a decrease in its own price. It is a movement along the supply curve, not applicable here.
- None of these: Not applicable as the correct option is provided.
The correct answer is:
Option 2 – Decrease in supply
By: santosh ProfileResourcesReport error
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