What causes a downward movement along a supply curve of a commodity?

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Answer

Downward movement along the supply curve implies contraction of the quantity supplied. Contraction of supply refers to the fall in supply due to fall in price of good, when all other factors of supply remain constant...Hope u've understood...

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Well PPF is concave shaped coz of increasing marginal rate of transformation i.e more and more unit of one commodity are sacrificed to gain an additional unit of another commodity...avni i know bt someone had asked a doubt regarding ppc curve in the comment of this question so i hve jus given the answer to that question... :)

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#samiksha. oh I misunderstood it sry dear#ss SharmaPPC is concave due to increasing MRT and not due to increasing MOC dear

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Thank you canaryyy

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Introduction:
A downward movement along a supply curve of a commodity signifies a decrease in the quantity supplied at each price level. This movement is caused by various factors that affect the supply of the commodity in the market. Understanding these factors is crucial in comprehending the dynamics of supply and its impact on the overall market equilibrium.

Changes in Quantity Supplied:
A downward movement along the supply curve indicates a change in the quantity supplied, while other factors remain constant. It represents a movement from one point to another on the same supply curve, highlighting a change in price and quantity supplied relationship.

Causes of Downward Movement:
Several factors can lead to a downward movement along the supply curve of a commodity:

1. Changes in Production Costs:
- Lower production costs, such as decreased input prices or improved technology, can make it more profitable for producers to supply a greater quantity at each price level. This leads to an expansion of supply and a downward movement along the curve.
- Conversely, if production costs increase, such as higher labor or raw material costs, producers may reduce their supply, resulting in a contraction of supply and an upward movement along the curve.

2. Technological Advancements:
- Technological advancements can enhance productivity and efficiency in the production process. This allows producers to supply more output at each price level, leading to an expansion of supply and a downward movement along the curve.
- Conversely, if there are no technological advancements or if technological progress slows down, the supply may decrease, causing an upward movement along the curve.

3. Changes in Government Policies and Regulations:
- Government policies and regulations can have a significant impact on the supply of a commodity. For instance, if the government imposes subsidies or tax incentives to encourage producers, the cost of production may decrease, resulting in an increase in supply and a downward movement along the curve.
- Conversely, if the government introduces regulations that increase production costs or restrict the supply of certain inputs, the supply may decrease, leading to an upward movement along the curve.

4. Natural Disasters and Environmental Factors:
- Natural disasters, such as floods, droughts, or earthquakes, can disrupt the production process and reduce the supply of a commodity. This results in a contraction of supply and an upward movement along the curve.
- Similarly, environmental factors, such as climate change or depletion of natural resources, can also impact the supply. If these factors reduce the availability of inputs or increase production costs, the supply may decrease, causing an upward movement along the curve.

Conclusion:
In conclusion, a downward movement along a supply curve of a commodity is caused by various factors, including changes in production costs, technological advancements, government policies, natural disasters, and environmental factors. These factors influence the quantity supplied at each price level, leading to a change in the market equilibrium and overall supply dynamics. Understanding these causes is essential for analyzing the behavior of supply and its impact on the market.

Answer

PPC is concave to the origin because of increasing Marginal opportunity cost. This is because inorder to increase the production of one good by 1 unit more and more units of the other good have to be sacrificed since the resources are limited and are not equally efficient in the production of both the goods.....It's an reply for Mukesh Kumar's  question...

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1.Inefficient technology2.Price of the commodity2.less no.of producer3.Rise in input price4.Government increase tax rate

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Fall in price brings downward movcement along supply curve. price is the only factor that brings downward movement

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How ppc is concave to origin

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