Two supply curves are illustrated in this graph.
Two supply curves

Which of the following movements would represent a decrease in the quantity supplied?

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

Question

Two supply curves are illustrated in this graph.
Two supply curves

Which of the following movements would represent a decrease in the quantity supplied?

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

Accepted Answer

∻Solution∻ ‖ a ⋮ Definition of Quantity Supplied: Quantity supplied refers to the amount of a good that producers are willing and able to sell at a given price. ‖ ‖ b ⋮ Movement Along Supply Curve: A movement along a supply curve occurs when there is a change in the quantity supplied due to a change in the price of the good. ‖ ‖ c ⋮ Identifying Decrease in Quantity Supplied: A decrease in the quantity supplied is represented by a movement down the supply curve, indicating that producers are willing to supply less of the good at a lower price. ‖ ‖ d ⋮ Analyzing Movements: - Movement from $C$ to $A$: This is a movement along the supply curve $S2$ from a higher quantity to a lower quantity, indicating a decrease in quantity supplied. - Movement from $A$ to $B$: This is a movement from supply curve $S2$ to $S1$, indicating a shift in supply, not a change in quantity supplied. - Movement from $B$ to $A$: This is a movement from supply curve $S1$ to $S2$, indicating a shift in supply, not a change in quantity supplied. - Movement from $B$ to $D$: This is a movement along the supply curve $S1$ from a lower quantity to a higher quantity, indicating an increase in quantity supplied. - Movement from $D$ to $A$: This is a movement from supply curve $S1$ to $S2$, indicating a shift in supply, not a change in quantity supplied. ‖ ∻Answer∻ ⚹ (A) $C$ to $A$ ⚹ ∻Key Concept∻ ⚹ Decrease in Quantity Supplied ⚹ ∻Explanation∻ ⚹ A decrease in the quantity supplied is represented by a movement down the supply curve, indicating that producers are willing to supply less of the good at a lower price. The movement from $C$ to $A$ on supply curve $S2$ fits this description. ⚹◊What formula can be used to calculate the quantity supplied in Microeconomics?⍭ Generate me a similar question◊

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