Question

what can give rise to an increse in supply in a market

Answer 1

Reasons for increase in supply-

1. Increase in the number of producers - More the people produxing the good or service more will be the supply.

2. Decrease in the cost of production- Decrease in cost of production raises the profit and hence the supply.

3. Improved technology- Better technology means increased productivity and Increased supply.

4. Favourable weather conditions- Goods which depends on cliamtic conditions are affected by the weather conditions.

5. Decrease in taxes- Lower the taxes, more will be the price received by seller and more will be the profit and supply.