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:
to
This represents a decrease in supply since a higher price, is required to produce the same quantity, 2 , at point than at point .
to
This represents an increase in the price and the quantity supplied, not an increase in supply.
to
This represents a decrease in supply since a higher price is required to produce the same quantity.
to
A smaller quantity is supplied at a price of at point than at point . This represents a decrease in supply.
to
At a price of , point indicates that 2 units would be sold and point indicates that 7 units would be sold. At the same price, more is being supplied indicating an increase in supply.
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