This graph illustrates two supply curves.
Two supply curves

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

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

Question

This graph illustrates two supply curves.
Two supply curves

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

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

Accepted Answer

∻Solution∻ ‖ a ⋮ Definition of Supply Curve: A supply curve shows the relationship between the price of a good and the quantity supplied. ‖‖ b ⋮ Movement Along 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. ‖‖ c ⋮ Increase in Supply: An increase in supply is represented by a rightward shift of the supply curve, meaning at every price level, a higher quantity is supplied. ‖ ∻Answer∻ ⚹ (A) $B$ to $A$ ⚹ ∻Key Concept∻ ⚹ Increase in Supply ⚹ ∻Explanation∻ ⚹ An increase in supply is represented by a shift from one supply curve to another, indicating that at the same price, a higher quantity is supplied. In this case, moving from point B on supply curve S1 to point A on supply curve S2 represents an increase in supply. ⚹◊What impact would an increase in the supply of a good have on the equilibrium price and quantity in a market, according to the given graph?⍭ Generate me a similar question◊

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