This graph illustrates two supply curves.
Two suply curves

Which of the following movements would be described as an increase in the supply of a good?

Choose 1 answer:
(A) $D$ to $C$
(B) $D$ to $A$
(c) $B$ to $A$
(D) $A$ to $C$
(E) $A$ to $D$

Question

This graph illustrates two supply curves.
Two suply curves

Which of the following movements would be described as an increase in the supply of a good?

Choose 1 answer:
(A) $D$ to $C$
(B) $D$ to $A$
(c) $B$ to $A$
(D) $A$ to $C$
(E) $A$ to $D$

Accepted Answer

∻Solution∻ ‖ a ⋮ Increase in Supply: An increase in the supply of a good is represented by a shift of the supply curve to the right. ‖ ‖ b ⋮ Analyzing the Graph: Movement from $B$ to $A$ indicates a shift from the original supply curve $S1$ to the new supply curve $S2$, which is to the right of $S1$. This represents an increase in supply at every price level since at the same price more quantity is supplied. ‖ ∻Answer∻ ⚹ (C) $B$ to $A$ ⚹ ∻Key Concept∻ ⚹ Rightward Shift of Supply Curve ⚹ ∻Explanation∻ ⚹ A movement from a point on the original supply curve to a point on a new supply curve that lies to the right of the original indicates an increase in supply. ⚹◊What impact would an increase in the supply of a good have on the equilibrium price and quantity in a market?⍭ Generate me a similar question◊

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