Question

Due to increase in GST the supply of Air conditioner decease from 20 units to 10 units at same price this situation leads to what?​

Answer 1

The answer is "The contraction in supply".

Step-by-step explanation:

It contributes to supply constriction with manufacturers, which helps to overcome the tax liabilities and decline as product demand only drops as the consequence of a decline in the cost of its product.

• It providers prefer, irrespective of high value-added tax or GST, to sustain rates to sustain their clients.
• The price change contracts credit policies when the prices increase, the certain factors remained amount produced will be increased, which is considered a supply extension.