Explain any two causes of "Decrease" in supply of a commodity.
Explain any two causes of "Decrease" in supply of a commodity.
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Two causes of decrease in supply are:
(i) Imposition of Unit Tax: It raises cost. Price remaining unchanged, profits fall. This leads to ‘decrease’ in supply.
(ii) Rise in Prices of Inputs: It raises cost. Price remaining unchanged, profits fall. This leads to ‘decrease’ in supply.
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