-Refer to the above figure. Suppose that the supply curve shifts from SA to SB while the demand curve remains at DA. Which of the following is TRUE?
A) Only quantity supplied has increased.
B) Only quantity demanded has decreased.
C) Supply has increased.
D) Supply has decreased.

Question

-Refer to the above figure. Suppose that the supply curve shifts from SA to SB while the demand curve remains at DA. Which of the following is TRUE?
A) Only quantity supplied has increased. 
B) Only quantity demanded has decreased. 
C) Supply has increased. 
D) Supply has decreased.

Quizplus · Accepted Answer

When the supply curve shifts from SA to SB, it indicates an increase in supply at every price level, not a change in the quantity supplied or demanded directly.

-Refer to the Above Figure