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) $B$ to $A$
(B) $A$ to $C$
(c) $D$ to $C$
(D) $D$ to $A$
(E) $A$ to $D$

Question

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) $B$ to $A$
(B) $A$ to $C$
(c) $D$ to $C$
(D) $D$ to $A$
(E) $A$ to $D$

Accepted Answer

∻Solution∻ ‖ a ⋮ Definition of Supply Curve: A supply curve shows the relationship between the price of a good and the quantity supplied. An increase in supply is represented by a rightward shift of the supply curve. ‖ ‖ b ⋮ Identifying Movements: In the given graph, the movement from $S_1$ to $S_2$ represents an increase in supply. This is because $S_2$ is to the right of $S_1$. ‖ ‖ c ⋮ Analyzing Points: The movement from point $D$ on $S_1$ to point $C$ on $S_2$ represents an increase in supply, as it shows a shift to a higher quantity at the same price level. ‖ ∻Answer∻ ⚹ (C) $D$ to $C$ ⚹ ∻Key Concept∻ ⚹ Increase in Supply ⚹ ∻Explanation∻ ⚹ An increase in supply is depicted by a rightward shift of the supply curve, indicating that more quantity is supplied at the same price. The movement from point $D$ on $S_1$ to point $C$ on $S_2$ represents this shift. ⚹◊What factors could cause a shift in the supply curve from S1 to S2 as shown in the graph?⍭ Generate me a similar question◊

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