Balbharati solutions for Economics HSC 12th Standard Maharashtra State Board
Chapter-4 Supply Analysis [Latest edition] [Latest edition]
3. Contraction of Supply and Decrease in Supply
Contraction of Supply | Decrease in Supply |
Contraction of supply refers to a fall in the quantity supplied, due to fall in the price of a commodity, other factors remaining constant. | Decrease in supply refers to a fall in the supply of a given commodity due to unfavourable changes in other factors. |
In case of contraction of supply, there is a downward movement on the same supply curve. | The supply curve shifts to the left of the original supply curve. |
