Chapter-4 Supply Analysis [Latest edition] (B) Observe the market supply schedule of potatoes and answer the following question:

Balbharati solutions for Economics HSC 12th Standard Maharashtra State Board 

 

Chapter-4 Supply Analysis [Latest edition] [Latest edition]

(B) Observe the market supply schedule of potatoes and answer the following question:

Price in ₹	Firms			Market supply (kg)
	A	B	C
1	____	20	45	100
2	37	30	45	_____
3	40	____	55	155
4	44	50	____	154

 

Draw the market supply curve from the schedule and explain it.

Price in ₹	Firms			Market supply (kg)
	A	B	C
1	35	20	45	100
2	37	30	45	112
3	40	60	55	155
4	44	50	60	154

Diagram

Note: -May be there is a printing mistake in question table because the supply curve is always increased

1. X-axis represents quantity supplied and Y-axis represents the price of the commodity.

2. Supply curve 'SS' slopes upwards from left to right which has a positive slope.

3. It indicates a direct relationship between price and quantity supplied.

Chapter-4 Supply Analysis [Latest edition] [Latest edition] Q.5. Observe the following table and answer the question: (A) Supply schedule of chocolates

Balbharati solutions for Economics HSC 12th Standard Maharashtra State Board 

 

Chapter-4 Supply Analysis [Latest edition] [Latest edition]

 

Q.5. Observe the following table and answer the question:

(A) Supply schedule of chocolates

Price in ₹	Quantity supplied in units
10	200
15
20	300
25	350
30
35
40

Solution: -

1. Complete the above supply schedule.

Price in ₹	Quantity supplied in units
10	200
15	250
20	300
25	350
30	400
35	450
40	500

Chapter-4 Supply Analysis [Latest edition] [Latest edition] 3. Contraction of Supply and Decrease in Supply

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.

Chapter-4 Supply Analysis [Latest edition] [Latest edition] 2. Expansion of Supply and Increase in Supply

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Chapter-4 Supply Analysis [Latest edition] [Latest edition]

 

2. Expansion of Supply and Increase in Supply

Expansion of Supply	Increase in Supply
Expansion of supply refers to a rise in the quantity supplied due to a rise in the price of a commodity, other factors remaining constant.	Increase in supply refers to rise in the supply of a given commodity due to favourable changes in other factors such as fall in the price of inputs, fall in tax rates, technological upgradation etc., while price remains constant.
Expansion in supply leads to an upward movement on the same supply curve due to a rise in price.	The supply curve shifts to the right of the original supply curve.

Chapter-4 Supply Analysis [Latest edition] [Latest edition] Q.4. Distinguish between: 1. Stock and Supply

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Chapter-4 Supply Analysis [Latest edition] [Latest edition]

Q.4. Distinguish between:

1. Stock and Supply.

STOCK SUPPLY

STOCK	SUPPLY
MeaningStock refers to the entire quantity of a commodity that is in the custody of the seller. So it is the potential supply.	Supply refers to the quantity of a commodity offered for sale at a given price and at a given time and place.
Dependence: -Stock depends on the production.	Supply depends on stock and price.
Relationship: - Stock can be greater than the supply. (a) For perishable commodities the stock and the supply can be the same. (b) For durable commodities, the stock can be more than the supply.	Supply cannot be greater than the stock. Supply is either equal or less than the stock.
Order of existence : - Stock comes before supply	Supply follows stock there cannot be supply without stock.

Chapter-4 Supply Analysis [Latest edition] [Latest edition] Q.3. Give economic term

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Chapter-4 Supply Analysis [Latest edition] [Latest edition]

 

Q.3. Give economic term:

1. Cost incurred on fixed factors.

Ans: - Total Fixed Cost.

2. Cost incurred per unit of output.

Ans - Average Cost

3. Net addition made to total cost of production.

Ans: - Marginal Cost

4. Revenue per unit of output sold.

Ans: -Average Revenue