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      Question

      Supply curve represents the relationship between

      product price and quantity of product that a seller is willing and able to supply. Shifting of supply curve rightward would imply which of the following?
      A Increase in profits Correct Answer Incorrect Answer
      B Decrease in profits Correct Answer Incorrect Answer
      C Reduction in quantity supplied Correct Answer Incorrect Answer
      D Reduction in price of its goods Correct Answer Incorrect Answer

      Solution

      · Supply curve of a firm tends to shift rightwards on account of enhanced profitability. Similarly it shifts leftwards when profit is reduced.
      · Technological progress shift the curve rightwards, similarly reduced input cost and reduced unit tax would give the same output.
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