Extension or contraction of supply is caused by

August 28, 2026Economics

ScanSolve AI Answer

August 28, 2026

Answer

Change in the price of the product

Extension or contraction of supply is caused by a change in the price of the product itself. An extension of supply occurs when the price increases, leading to a movement up the supply curve. A contraction of supply occurs when the price decreases, leading to a movement down the supply curve.

$\boxed{Change in the price of the product}$

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Quick Answer

Extension or contraction of supply is caused by a change in the price of the product itself.

Asked on August 28, 2026Economics

This economics question tests your understanding of economic models and analysis. The step-by-step answer below applies the relevant framework and explains the reasoning.

ScanSolve AI AnswerAnswered on August 28, 2026

Extension or contraction of supply is caused by a change in the price of the product itself. An extension of supply occurs when the price increases, leading to a movement up the supply curve. A contraction of supply occurs when the price decreases, leading to a movement down the supply curve. Change in the price of the product 3 done, 2 left today. You're making progress.