Figure: Four Markets for DVDs (Figure: Four Markets for DVDs) Look at the figure Four Markets for DVDs.If D1 or S1 is the original curve and D2 or S2 is the new curve, which of the graphs shows a change that results in a decrease in the quantity of DVDs supplied?
A)A
B)B
C)C
D)D

Question

Figure: Four Markets for DVDs   (Figure: Four Markets for DVDs) Look at the figure Four Markets for DVDs.If D1 or S1 is the original curve and D2 or S2 is the new curve, which of the graphs shows a change that results in a decrease in the quantity of DVDs supplied?
A)A 
B)B 
C)C 
D)D

Quizplus · Accepted Answer

When the supply curve shifts from S1 to S2, the quantity supplied increases at every given price level. Therefore, a decrease in the quantity supplied requires a shift from S2 to S1. This is illustrated by graph C, where the original supply curve (S1) intersects with the demand curve at a lower quantity than the new supply curve (S2).