Question

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Which of the following are responsible for supply side cost of products
1. Change in production technology
2. Change in the cost of production
3. Taxes and subsidies
Select the correct answer using the code given below:

• A. 1 only
• B. 1 and 2
• C. 1 and 3
• D. 1,2 and 3

Answer 1

The correct option is D 1,2 and 3

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> If there is change in the cost of production technology then cost of the product change accordingly. Secondly, If there is change in the cost of production for eg, If price of raw material increases then the cost of product will change . Thirdly, if taxes and subsidies are increased or decreased price of the product will also be impacted accordingly.