The supply curve of a given commodity is given to be S_(0). On the basis of this diagram, answer thefollowing questions: Increasesin costof productionof thiscommoditywillleadto :

The supply curve of a given commodity is given to be S_(0). On the bas

1.	The supply curve of a given commodity is given to be S_(0). On the basis of this diagram, answer thefollowing questions: Increasesin costof productionof thiscommoditywillleadto :
Answer» Movement from `S_(0)` to `S_(1)` Movementform `S_(0)` to `S_(2)` Upward movementalong the `S_(0)` No CHANGE at all SOLUTION :Increase in the cost of production reduces the PROFIT marginof this PARTICULAR COMMODITY and hence supply fallsand there is a movement from So toS1.