Read and download CBSE Class 12 Economics Producers Behaviour and Supply chapter in NCERT book for Class 12 Economics. You can download latest NCERT eBooks for 2021 chapter wise in PDF format free from Studiestoday.com. This Economics textbook for Class 12 is designed by NCERT and is very useful for students. Please also refer to the NCERT solutions for Class 12 Economics to understand the answers of the exercise questions given at the end of this chapter
Producers Behaviour And Supply Class 12 Economics NCERT
Class 12 Economics students should refer to the following NCERT Book chapter Producers Behaviour And Supply in standard 12. This NCERT Book for Grade 12 Economics will be very useful for exams and help you to score good marks
Producers Behaviour And Supply NCERT Class 12
PRODUCER’S BEHAVIOUR AND SUPPLY
Meaning of supply
Supply means the quantity of a commodity which a firm or an industry is willing to produce at a particular price, during a given time period.
Law of supply
This law states that 'other things remaining the same', an increase in the price of a commodity leads to an increase in its quantity supplied. Thus, more of a commodity is supplied at higher prices than at lower prices.
This law can be explained with the help of a supply schedule and curve.
A supply schedule is a table which shows the quantities of a commodity supplied at various prices during a given time period.
As the price increases from Re. 1 to Rs. 3, the supply also rises from 100 units to 300 units, in response to the rising price. What is the basis of the law of upply? Other things remainingthe same, an increase in price results in higher profits for the producer. The higher the price of the commodity, the greater are the profits earned by the firms and the greater is the incentive to produce more. Similarly when the price falls, profits decline, resulting in a decrease in quantity supplied of the commodity. Thus the price and quantity supplied of a commodity are directly related, other things remaining the same.
‘Change in supply’ versus ‘change in quantity supplied’
(‘shift of supply curve’ versus ‘movement along a supply curve’)
The supply of a commodity depends on its own price and 'other factors' like input prices, technique of production, prices of other goods, goals of the firm, taxes on the commodity etc.
Movement along a supply curve
The law of supply states the effect of a change in the own price of a commodity on its supply, other things remaining constant. The supply curve also carries the same assumption. Thus whenot her factors influencing supply do not change, and only the own price of the commodity changes, the
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