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Question
Statistics
Posted 4 months ago
Which of the following describes the movement indicated by the arrow in the graph shown?
Two supply curves
Choose 1 answer:
(A) An increase in the quantity supplied
(B) A decrease in quantity supplied
(C) A decrease in supply
(D) An increase in the supply
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Answer from Sia
Posted 4 months ago
Solution by Steps
step 1
To analyze the graph, we need to understand the relationship between the supply curves S1 and S2
step 2
The shift from S1 to S2 represents a change in the supply curve
step 3
An upward shift from S1 to S2, while keeping the price constant, indicates that for the same price level, the quantity supplied has increased
step 4
This shift does not represent a movement along the supply curve, which would indicate a change in quantity supplied due to a change in price, but rather a shift of the entire curve
step 5
Therefore, the shift from S1 to S2 represents an increase in supply, not just an increase in the quantity supplied at a given price
Answer
***D***
Key Concept
Shifts in Supply Curve
Explanation
A shift from S1 to S2 represents an increase in supply, which means at every price level, more quantity is supplied. This is different from a movement along the supply curve, which would indicate a change in quantity supplied due to a change in price.
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