Answer :

A) The effect of a fall in own price of good X is explained in the following schedule:



● With the increase in price from Rs 10 to Rs 11, the supply reduces from 120 units to 110 units.


● The price further increases to Rs 12 and the supply reduces to 100 units.


● The price and supply are inversely proportionate to each other.


B) The effect of a rise in the tax rate on good X on the supply of a good. fall in own price of good X is explained in the following schedule:



● The price remains constant throughout.


● The rise in the tax rate on good X leads to a fall in the supply of good X from 120 units to 110 units.


● The tax rate and supply of a Good are inversely related


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