Figure 3-2

-Refer to Figure 3-2.A decrease in the price of the product would be represented by a movement from
A)A to B.
B)B to A.
C)S₁ to S₂.
D)S₂ to S₁.

Question

Figure 3-2
 
-Refer to Figure 3-2.A decrease in the price of the product would be represented by a movement from
A)A to B. 
B)B to A. 
C)S₁ to S₂. 
D)S₂ to S₁.

Quizplus · Accepted Answer

According to the law of supply, as the price of a product decreases, the quantity supplied also decreases. This would be represented by a movement along the supply curve from point B to point A, as suppliers would be willing to supply less of the product at the lower price.

Figure 3-2 -Refer to Figure 3-2.A Decrease in the Price of the the Price