The supply curve of a given commodity is given to be S_(0). On the basis of this diagram, answer thefollowing questions: Movement from S_(0) to S_(2) is caused by :

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: Movement from S_(0) to S_(2) is caused by :
Answer» INCREASE inpriceof givenproduct Increase in thepriceof theinputs TechnologicalUpgradation DECREASE inpriceof given product Solution :Movement from S0 to S1 SHOWS the rightward shift in SUPPLY curve, so there must have been increase in supply and that can happen when there is an tenchnological upgradation.