Figure 4.5
-Figure 4.5 illustrates the supply of guitars. An increase in the supply of guitars is represented by a movement from:

Question

Quizplus · Accepted Answer

The increase in supply is represented by a rightward shift of the supply curve, from S₁ to S₀, indicating that at any given price level, sellers are now willing to provide a greater quantity of guitars. Movement from point B to point C represents a change in quantity supplied due to a change in price, not a change in supply. Movement from point B to point A would represent a decrease in supply, not an increase.

Figure 4.5 -Figure 4.5 Illustrates the Supply of Guitars. an Increase in Increase