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Question
Microeconomics
Posted 2 months ago

This graph illustrates two supply curves.
Two supply curves

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

Choose 1 answer:
(A) DD to CC
(B) BB to AA
(C) AA to CC
(D) AA to DD
(E)) DD to AA
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Answer from Sia
Posted 2 months ago
Solution
a
Definition of Supply Curve Shift: An increase in supply is represented by a rightward shift of the supply curve, meaning at every price level, a greater quantity is supplied
b
Identifying the Shift: Movement from point B to point A represents a shift from supply curve S1 to supply curve S2, indicating an increase in supply
Answer
(B) BB to AA
Key Concept
Increase in Supply
Explanation
An increase in supply is shown by a rightward shift of the supply curve, meaning more quantity is supplied at each price level. Movement from point B to point A represents this shift from S1 to S2.

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