1.

Explain rightward shift and leftward shift in supply curve.

Answer»

Rightward shift:

  • Keeping price facto, ^s constant, if supply increases due to any other factor, the supply curve will shift towards right which is called rightward shift in supply curve.
  • The factors responsible for rightward shift could be fall in cost of production, fall in prices of factors of production, improvement in technology, rise in number of suppliers, government policies, etc.

Leftward shift:

  • Keeping price factor as constant, if supply decreases due to any other factor, the supply curve will shift towards left which is called leftward shift in supply curve.
  • Leftward shift takes place when one or more above mentioned factors behaves in a reversed manner.


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