Unformatted text preview: increased at the same old price, since the cost of production can now be reduced. Similarly with an enhanced supply of resources and a reduction in the prices of resources such as land, labor , raw materials etc. an increasing quantity of the commodity can be supplied at a constant or even falling price. Figure 4 Figure 4 is the graphical representation (the supply curve ) of the supply schedule. It begins at the point of origin where both quantity supplied and price are zero in value, and then it continuously rises upwards. This upward sloping curve indicates the positive relationship between supply and price: there is a rise in the quantity supplied with every successive rise in the price....
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- Fall '10
- Supply And Demand, Economics terminology, Alfred Marshall