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Question
Microeconomics
Posted 9 months ago

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:
BB to AA
This represents a decrease in supply since a higher price, $6\$ 6 is required to produce the same quantity, 2 , at point AA than at point BB.
AA to CC
This represents an increase in the price and the quantity supplied, not an increase in supply.
DD to CC
This represents a decrease in supply since a higher price is required to produce the same quantity.
DD to AA
A smaller quantity is supplied at a price of $6\$ 6 at point AA than at point DD. This represents a decrease in supply.
AA to DD
At a price of $6\$ 6, point AA indicates that 2 units would be sold and point DD indicates that 7 units would be sold. At the same price, more is being supplied indicating an increase in supply.
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Answer from Sia
Posted 9 months ago
Solution
a
Understanding Supply Curve Shifts: An increase in supply means that a greater quantity is supplied at each price level, which is represented by a rightward shift of the supply curve
b
Analyzing Given Points: Point AA to point DD shows an increase in the quantity supplied from 2 units to 7 units at the same price of 6.Thisindicatesarightwardshiftofthesupplycurvefrom6. This indicates a rightward shift of the supply curve from S1to to S2$, which is an increase in supply
Answer
AA to DD
Key Concept
Increase in Supply
Explanation
Moving from point AA to point DD on the graph indicates an increase in the quantity supplied at the same price, which is characteristic of an increase in supply.

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