FIGURE 4-2

-Refer to Figure 4-2. Under what circumstances would a movement from S₁ to S₂ occur?

Question

FIGURE 4-2
 
-Refer to Figure 4-2. Under what circumstances would a movement from S₁ to S₂ occur?

Quizplus · Accepted Answer

A movement from S₁ to S₂ indicates an increase in supply. This could occur if the price of sliced beef, a key ingredient in submarine sandwiches, decreases. With a lower input cost, producers can offer more for sale at any given price, resulting in a rightward shift of the supply curve. Option A, an increase in the price of potato chips, is a complement to submarine sandwiches and would not directly affect the supply of submarine sandwiches. Option B, an increase in the price of wheat bread, would result in a leftward shift of the supply curve for submarine sandwiches, indicating a decrease in supply. Option D, an increase in the price of submarine sandwiches themselves, would not directly affect the supply of submarine sandwiches, but it could potentially affect the demand for them, leading to a different movement along the supply curve rather than a shift.

FIGURE 4-2 -Refer to Figure 4-2. Under What Circumstances Would a Movement