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The theory of the firm under perfect competition — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsThe theory of the firm under perfect competition2 Marks
Question
What does the positive sign in the formula $\frac{\Delta\text{p}}{\Delta\text{q}}$ indicate? Explain.
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Answer

Positive sign in the formula $\frac{\Delta\text{p}}{\Delta\text{q}}$ indicates a positive or direct relationship between the price and quantity supplied of a commodity. It is well-known observation that as the price of a commodity increases normally more quantity is supplied and as its price decreases, less quantity is supplied.

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