Giving reasons state whether the following statement is true or false. – InterviewSolution

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1.	Giving reasons state whether the following statement is true or false. 'The supply curve of a good shifts to the right when prices of other goods rise'.
Answer» This statement is false. Increase in prices of other goods makes their production more profitable for the producer. As a result the firm shifts its resources from production of the given commodity to the production of other goods. A decline in the supply of a commodity shift supply curve to left.

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