Figure: Supply Shifts Reference: Ref 3-4 (Figure: Supply Shifts) In the figure, the initial supply curve is S1. Producers engage in market speculation with the belief that the price of the good will increase in the near future. This would be represented in the figure by shifting the:
A) supply curve to S2, resulting in a lower quantity supplied at each price.
B) supply curve to S2, resulting in a higher quantity supplied at each price.
C) supply curve to S3, resulting in a lower quantity supplied at each price.
D) supply curve to S3, resulting in a higher quantity supplied at each price.

Question

Figure: Supply Shifts  Reference: Ref 3-4 (Figure: Supply Shifts) In the figure, the initial supply curve is S1. Producers engage in market speculation with the belief that the price of the good will increase in the near future. This would be represented in the figure by shifting the:
A) supply curve to S2, resulting in a lower quantity supplied at each price. 
B) supply curve to S2, resulting in a higher quantity supplied at each price. 
C) supply curve to S3, resulting in a lower quantity supplied at each price. 
D) supply curve to S3, resulting in a higher quantity supplied at each price.

Quizplus · Accepted Answer

The Answer of Figure: Supply Shifts  Reference: Ref 3-4 (Figure: Supply Shifts) In the figure, the initial supply curve is S1. Producers engage in market speculation with the belief that the price of the good will increase in the near future. This would be represented in the figure by shifting the:
A) supply curve to S2, resulting in a lower quantity supplied at each price. 
B) supply curve to S2, resulting in a higher quantity supplied at each price. 
C) supply curve to S3, resulting in a lower quantity supplied at each price. 
D) supply curve to S3, resulting in a higher quantity supplied at each price.