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Question
Macroeconomics
Posted 6 months ago
Two supply curves
Which of the following movements would represent a decrease in the quantity supplied, but not associated with a decrease in supply?
Choose 1 answer:
(A) to
(B) to
(c) to
(D) to
(ㄷ) to 
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Answer from Sia
Posted 6 months ago
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 the Supply Curve: A movement along the supply curve occurs when there is a change in the quantity supplied due to a change in the price of the good, holding all other factors constant
c
Analysis of Points:
- Point A (S2, x=2, y=6)
- Point B (S1, x=2, y=4)
- Point C (S2, x=6, y=8)
- Point D (S1, x=6, y=7)
d
Identifying the Correct Movement:
- Movement from D to A: This represents a shift from a higher quantity (Q=6) to a lower quantity (Q=2) on different supply curves (S1 to S2), indicating a decrease in supply.
- Movement from B to D: This represents a movement along the same supply curve (S1) from a lower quantity (Q=2) to a higher quantity (Q=6), indicating an increase in quantity supplied.
- Movement from A to B: This represents a movement from a higher price (P=6) to a lower price (P=4) on different supply curves (S2 to S1), indicating a decrease in supply.
- Movement from C to A: This represents a movement from a higher quantity (Q=6) to a lower quantity (Q=2) on the same supply curve (S2), indicating a decrease in quantity supplied.
- Movement from B to A: This represents a movement from a lower price (P=4) to a higher price (P=6) on different supply curves (S1 to S2), indicating a decrease in supply
Answer
(D) to
Key Concept
Movement along the supply curve
Explanation
A movement along the supply curve represents a change in the quantity supplied due to a change in the price of the good, holding all other factors constant. The correct answer is (D) to because it represents a decrease in the quantity supplied on the same supply curve (S2).
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