Define Law of supply and explain it with a schedule and diagram-00564
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vu cs401 Computer Architecture and Assembly Language Programming.
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vu cs401 Mid Term Solved Past Paper No. 3.
Question 1: Define "Law of supply" and explain it with a schedule and diagram.
What are the factors which cause the shift in market supply curve?
Factors Effect on Direction of Equilibrium Equilibrium changing supply Shift in supply Price quantity
What are the factors which cause the shift in market supply curve?
Answer:
LAW OF SUPPLY
It states that as the price goes up the quantity supplied also goes up and when price falls quantity supplied also falls.
Schedule for Supply
| Price (Rs.) Quantity supplied | |
| 5 | 100 |
| 4 | 95 |
| 3 | 80 |
| 2 | 60 |
| 1 | 40 |
Factors Causing Shift in Supply Curve
There are various factors causing shift in market supply curve which are as follows:Factors Effect on Direction of Equilibrium Equilibrium changing supply Shift in supply Price quantity
