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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 competition1 Mark
Question
Which of the following is not a cause of decrease in supply?
  1. Rise in price of substitute goods.
  2. Increase in price of complementary goods.
  3. Increase in taxes.
  4. Rise in price of labour (i.e. wages).
Hint: Supply of a commodity is directly related with price of its complementary goods. Increase in price of complementary goods cause increase in supply of the commodity.
✓

Answer

  1. Increase in price of complementary goods.

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