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Question
Microeconomics
Posted 7 months ago
Which of the following describes the movement indicated by the arrow in the graph shown?
Two supply curves
Choose 1 answer:
(A) A decrease in quantity supplied
(B) A decrease in supply
(c) An increase in the supply
(D) An increase in the quantity supplied
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Answer from Sia
Posted 7 months ago
Solution
a
Change in Quantity Supplied: A movement along a supply curve, caused by a change in the price of the good
b
Change in Supply: A shift of the entire supply curve, caused by factors other than the price of the good
c
Graph Analysis: The graph shows two supply curves, S1 and S2, with S2 to the right of S1. The rightward arrow indicates a shift from S1 to S2
d
Interpretation: A rightward shift of the supply curve (from S1 to S2) represents an increase in supply
Answer
(C) An increase in the supply
Key Concept
Supply Curve Shift
Explanation
A rightward shift in the supply curve indicates an increase in supply, meaning that at every price level, a greater quantity is supplied.
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