Figure 4.5
-Figure 4.5 illustrates the supply of guitars.If firms expect the price of guitars to go up after Christmas,then before Christmas this would most likely cause a movement from

Question

Quizplus · Accepted Answer

If firms expect the price of guitars to go up after Christmas, they may decrease the supply of guitars before Christmas in order to sell them at a higher price later. This would cause a shift of the supply curve from S₁ to S₂, indicating a decrease in supply. Therefore, the correct choice is D, S₁ to S₂.

Figure 4.5 -Figure 4.5 Illustrates the Supply of Guitars.If Firms Expect the Expect