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Statement 1: Supply of the commodity can also decrease when the price remains constant.
Statement 2: Due to rise in price of factor of production or inputs.
Alternatives:
Both the statements are true.
Both the statements are false.
Statement 1 is true but statement 2 is false.
Statement 1 is false but statement 2 is true.
Option (3) is correct. Explanation: When price remains same but supply falls due to factors other than the own price of the commodity. It is called as decrease in supply. It can be due to various reasons like rise in price of factor of production, outdated technique of production, etc.
By: Parvesh Mehta ProfileResourcesReport error
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