Which of the following movements would be described as an increase in supply of a good?
Two supply curves

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

Question

Which of the following movements would be described as an increase in supply of a good?
Two supply curves

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

Accepted Answer

∻Solution∻ ‖ a ⋮ Definition of Supply Curve: The supply curve shows the relationship between the price of a good and the quantity supplied. An increase in supply means that at every price level, the quantity supplied is higher. ‖ ‖ b ⋮ Movement Analysis: In the given graph, S1 and S2 are two supply curves. A movement from a point on S1 to a point on S2 indicates a change in supply. ‖ ‖ c ⋮ Correct Movement: The movement from point A to point C represents a shift from the supply curve S1 to the supply curve S2, indicating an increase in supply. ‖ ∻Answer∻ ⚹ (B) $A$ to $C$ ⚹ ∻Key Concept∻ ⚹ Increase in Supply ⚹ ∻Explanation∻ ⚹ An increase in supply is represented by a rightward shift of the supply curve, meaning that at every price level, the quantity supplied is higher. The movement from point A to point C on the graph indicates such a shift. ⚹◊What impact would an increase in supply have on the equilibrium price and quantity of the good in this scenario?⍭ Generate me a similar question◊

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