Exhibit 3-4 Supply curves

In Exhibit 3-4, a shift in the supply curve from S₁ to S₂ represents a(n) :

Question

Exhibit 3-4 Supply curves In Exhibit 3-4, a shift in the supply curve from S₁ to S₂ represents a(n):

Quizplus · Accepted Answer

The shift of the supply curve to the right, from S₁ to S₂, indicates an increase in supply. This means that at any given price, suppliers are willing and able to offer more units of the good or service. It is not a decrease in supply (A) or quantity supplied (B), nor is it an increase in quantity supplied (D).

Exhibit 3-4 Supply Curves