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Expansion in supply refers to a situation when the producers are willing to supply a:
- a)Larger quantity of the commodity at an increased price
- b)Larger quantity of the commodity due to increased taxation on that commodity
- c)Larger quantity of the commodity at the same price
- d)Larger quantity of the commodity at the decreased price
Correct answer is option 'A'. Can you explain this answer?
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Most Upvoted Answer
Expansion in supply refers to a situation when the producers are willi...
Expansion in Supply
Expansion in supply refers to a situation where the producers are willing to supply a larger quantity of the commodity at an increased price. This is an indication that the producers are willing and able to produce more of the product to meet the increasing demand.
Factors that cause expansion in supply
1. Increase in prices: An increase in the price of a commodity is one of the main factors that can lead to an expansion in supply. This is because producers will want to take advantage of the higher prices to increase their profits.
2. Technological advancements: Technological advancements can lead to an increase in the production efficiency of a product. This can lead to an expansion in supply as producers can now produce more of the product at a lower cost.
3. Availability of raw materials: The availability of raw materials is another factor that can lead to an expansion in supply. If there is an abundance of raw materials, producers can produce more of the product at a lower cost.
4. Increase in subsidies: Subsidies can encourage producers to increase their production of a commodity. This is because subsidies reduce the cost of production and increase profitability.
Conclusion
In conclusion, an expansion in supply refers to a situation where producers are willing to supply a larger quantity of the commodity at an increased price. This is caused by factors such as an increase in prices, technological advancements, availability of raw materials, and increase in subsidies.
Expansion in supply refers to a situation where the producers are willing to supply a larger quantity of the commodity at an increased price. This is an indication that the producers are willing and able to produce more of the product to meet the increasing demand.
Factors that cause expansion in supply
1. Increase in prices: An increase in the price of a commodity is one of the main factors that can lead to an expansion in supply. This is because producers will want to take advantage of the higher prices to increase their profits.
2. Technological advancements: Technological advancements can lead to an increase in the production efficiency of a product. This can lead to an expansion in supply as producers can now produce more of the product at a lower cost.
3. Availability of raw materials: The availability of raw materials is another factor that can lead to an expansion in supply. If there is an abundance of raw materials, producers can produce more of the product at a lower cost.
4. Increase in subsidies: Subsidies can encourage producers to increase their production of a commodity. This is because subsidies reduce the cost of production and increase profitability.
Conclusion
In conclusion, an expansion in supply refers to a situation where producers are willing to supply a larger quantity of the commodity at an increased price. This is caused by factors such as an increase in prices, technological advancements, availability of raw materials, and increase in subsidies.
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Community Answer
Expansion in supply refers to a situation when the producers are willi...
The correct answer is Option A: Larger quantity of the commodity at an increased price.
Explanation:
Expansion in supply refers to a situation where producers are willing to supply a larger quantity of a commodity in response to an increase in its price.
In summary, expansion in supply occurs when producers are willing to supply a larger quantity of a commodity at an increased price, driven by factors such as higher profit margins, improved production technology, economies of scale, favorable market conditions, and government policies.
Explanation:
Expansion in supply refers to a situation where producers are willing to supply a larger quantity of a commodity in response to an increase in its price.
In summary, expansion in supply occurs when producers are willing to supply a larger quantity of a commodity at an increased price, driven by factors such as higher profit margins, improved production technology, economies of scale, favorable market conditions, and government policies.
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Expansion in supply refers to a situation when the producers are willing to supply a:a)Larger quantity of the commodity at an increased priceb)Larger quantity of the commodity due to increased taxation on that commodityc)Larger quantity of the commodity at the same priced)Larger quantity of the commodity at the decreased priceCorrect answer is option 'A'. Can you explain this answer?
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