FIGURE 3- 6
-Refer to Figure 3- 6. A shift in the supply curve from S2 to S1 might be caused by

Question

Quizplus · Accepted Answer

A shift in the supply curve from S2 to S1 indicates a decrease in the quantity supplied at every price level. This could occur because of a rise in the costs of producing good X, which would make it less profitable for suppliers to supply the same quantity at previous prices. This would shift the supply curve to the left, resulting in lower quantities supplied at every price level. Choices A, B, C, and E do not affect the supply curve and would result in movements along it.

FIGURE 3- 6 -Refer to Figure 3- 6. a Shift in the Supply