{"id":86465,"date":"2025-06-01T03:48:21","date_gmt":"2025-06-01T03:48:21","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=86465"},"modified":"2025-06-01T03:48:21","modified_gmt":"2025-06-01T03:48:21","slug":"other-things-remaining-constant-the-market-supply-for-a-good-increase","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/other-things-remaining-constant-the-market-supply-for-a-good-increase\/","title":{"rendered":"Other things remaining constant, the market supply for a good increase"},"content":{"rendered":"<p>Other things remaining constant, the market supply for a good increases if:<\/p>\n<ul>\n<li>its price increases.<\/li>\n<li>price of its factors of production decreases.<\/li>\n<li>price of other goods decreases.<\/li>\n<\/ul>\n<p>Select the correct answer using the code given below:<\/p>\n<p>[amp_mcq option1=&#8221;1 and 2 only&#8221; option2=&#8221;1 and 3 only&#8221; option3=&#8221;2 and 3 only&#8221; option4=&#8221;1, 2 and 3&#8243; correct=&#8221;option3&#8243;]<\/p>\n<div class=\"psc-box-pyq-exam-year-detail\">\n<div class=\"pyq-exam\">\n<div class=\"psc-heading\">This question was previously asked in<\/div>\n<div class=\"psc-title line-ellipsis\">UPSC CDS-2 &#8211; 2023<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-cds-2-2023.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-cds-2-2023\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">\nThe correct answer is C) 2 and 3 only.<br \/>\n<\/section>\n<section id=\"pyq-key-points\">\nMarket supply increases when the supply curve shifts to the right. Let&#8217;s analyze the statements:<br \/>\n1.  Its price increases: An increase in the price of the good leads to an increase in the quantity supplied, causing a movement *along* the supply curve, not a shift of the entire curve.<br \/>\n2.  Price of its factors of production decreases: Lower input costs reduce the cost of production, making the good more profitable to produce at any given price. This leads to an increase in supply, shifting the supply curve to the right.<br \/>\n3.  Price of other goods decreases: Assuming these are substitute goods in production (producers can produce either Good A or Good B), a decrease in the price of Good B makes producing Good A relatively more profitable. Producers will shift resources towards producing Good A, increasing its supply (shifting the supply curve right).<br \/>\nTherefore, statements 2 and 3 describe factors that cause the market supply curve to shift to the right, indicating an increase in market supply.<br \/>\n<\/section>\n<section id=\"pyq-additional-information\">\nFactors that can cause a shift in the supply curve include changes in input prices, technology, prices of related goods (substitutes or complements in production), expectations, government policies (taxes, subsidies), and the number of sellers. A change in the good&#8217;s own price causes only a movement along the supply curve, changing the quantity supplied.<br \/>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>Other things remaining constant, the market supply for a good increases if: its price increases. price of its factors of production decreases. price of other goods decreases. Select the correct answer using the code given below: [amp_mcq option1=&#8221;1 and 2 only&#8221; option2=&#8221;1 and 3 only&#8221; option3=&#8221;2 and 3 only&#8221; option4=&#8221;1, 2 and 3&#8243; correct=&#8221;option3&#8243;] This &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Other things remaining constant, the market supply for a good increase\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/other-things-remaining-constant-the-market-supply-for-a-good-increase\/#more-86465\">Detailed Solution<span class=\"screen-reader-text\">Other things remaining constant, the market supply for a good increase<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1088],"tags":[1105,1120,1261],"class_list":["post-86465","post","type-post","status-publish","format-standard","hentry","category-upsc-cds-2","tag-1105","tag-economic-development","tag-nature-of-indian-economy","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Other things remaining constant, the market supply for a good increase<\/title>\n<meta name=\"description\" content=\"The correct answer is C) 2 and 3 only. Market supply increases when the supply curve shifts to the right. Let&#039;s analyze the statements: 1. Its price increases: An increase in the price of the good leads to an increase in the quantity supplied, causing a movement *along* the supply curve, not a shift of the entire curve. 2. Price of its factors of production decreases: Lower input costs reduce the cost of production, making the good more profitable to produce at any given price. This leads to an increase in supply, shifting the supply curve to the right. 3. Price of other goods decreases: Assuming these are substitute goods in production (producers can produce either Good A or Good B), a decrease in the price of Good B makes producing Good A relatively more profitable. Producers will shift resources towards producing Good A, increasing its supply (shifting the supply curve right). Therefore, statements 2 and 3 describe factors that cause the market supply curve to shift to the right, indicating an increase in market supply.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/other-things-remaining-constant-the-market-supply-for-a-good-increase\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Other things remaining constant, the market supply for a good increase\" \/>\n<meta property=\"og:description\" content=\"The correct answer is C) 2 and 3 only. Market supply increases when the supply curve shifts to the right. Let&#039;s analyze the statements: 1. Its price increases: An increase in the price of the good leads to an increase in the quantity supplied, causing a movement *along* the supply curve, not a shift of the entire curve. 2. Price of its factors of production decreases: Lower input costs reduce the cost of production, making the good more profitable to produce at any given price. This leads to an increase in supply, shifting the supply curve to the right. 3. Price of other goods decreases: Assuming these are substitute goods in production (producers can produce either Good A or Good B), a decrease in the price of Good B makes producing Good A relatively more profitable. Producers will shift resources towards producing Good A, increasing its supply (shifting the supply curve right). Therefore, statements 2 and 3 describe factors that cause the market supply curve to shift to the right, indicating an increase in market supply.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/other-things-remaining-constant-the-market-supply-for-a-good-increase\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T03:48:21+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Other things remaining constant, the market supply for a good increase","description":"The correct answer is C) 2 and 3 only. Market supply increases when the supply curve shifts to the right. Let's analyze the statements: 1. Its price increases: An increase in the price of the good leads to an increase in the quantity supplied, causing a movement *along* the supply curve, not a shift of the entire curve. 2. Price of its factors of production decreases: Lower input costs reduce the cost of production, making the good more profitable to produce at any given price. This leads to an increase in supply, shifting the supply curve to the right. 3. Price of other goods decreases: Assuming these are substitute goods in production (producers can produce either Good A or Good B), a decrease in the price of Good B makes producing Good A relatively more profitable. Producers will shift resources towards producing Good A, increasing its supply (shifting the supply curve right). Therefore, statements 2 and 3 describe factors that cause the market supply curve to shift to the right, indicating an increase in market supply.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/other-things-remaining-constant-the-market-supply-for-a-good-increase\/","og_locale":"en_US","og_type":"article","og_title":"Other things remaining constant, the market supply for a good increase","og_description":"The correct answer is C) 2 and 3 only. Market supply increases when the supply curve shifts to the right. Let's analyze the statements: 1. Its price increases: An increase in the price of the good leads to an increase in the quantity supplied, causing a movement *along* the supply curve, not a shift of the entire curve. 2. Price of its factors of production decreases: Lower input costs reduce the cost of production, making the good more profitable to produce at any given price. This leads to an increase in supply, shifting the supply curve to the right. 3. Price of other goods decreases: Assuming these are substitute goods in production (producers can produce either Good A or Good B), a decrease in the price of Good B makes producing Good A relatively more profitable. Producers will shift resources towards producing Good A, increasing its supply (shifting the supply curve right). Therefore, statements 2 and 3 describe factors that cause the market supply curve to shift to the right, indicating an increase in market supply.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/other-things-remaining-constant-the-market-supply-for-a-good-increase\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T03:48:21+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/other-things-remaining-constant-the-market-supply-for-a-good-increase\/","url":"https:\/\/exam.pscnotes.com\/mcq\/other-things-remaining-constant-the-market-supply-for-a-good-increase\/","name":"Other things remaining constant, the market supply for a good increase","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T03:48:21+00:00","dateModified":"2025-06-01T03:48:21+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"The correct answer is C) 2 and 3 only. Market supply increases when the supply curve shifts to the right. Let's analyze the statements: 1. Its price increases: An increase in the price of the good leads to an increase in the quantity supplied, causing a movement *along* the supply curve, not a shift of the entire curve. 2. Price of its factors of production decreases: Lower input costs reduce the cost of production, making the good more profitable to produce at any given price. This leads to an increase in supply, shifting the supply curve to the right. 3. Price of other goods decreases: Assuming these are substitute goods in production (producers can produce either Good A or Good B), a decrease in the price of Good B makes producing Good A relatively more profitable. Producers will shift resources towards producing Good A, increasing its supply (shifting the supply curve right). Therefore, statements 2 and 3 describe factors that cause the market supply curve to shift to the right, indicating an increase in market supply.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/other-things-remaining-constant-the-market-supply-for-a-good-increase\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/other-things-remaining-constant-the-market-supply-for-a-good-increase\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/other-things-remaining-constant-the-market-supply-for-a-good-increase\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC CDS-2","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-cds-2\/"},{"@type":"ListItem","position":3,"name":"Other things remaining constant, the market supply for a good increase"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/86465","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=86465"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/86465\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=86465"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=86465"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=86465"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}