-According to the above figure, then the supply curve will
A)shift from S₁ to S₂.
B)shift from S₂ to S₁.
C)remain at S₁.
D)shift either to the left or the right, but it is impossible to say without more information.

Question

-According to the above figure, then the supply curve will
A)shift from S₁ to S₂. 
B)shift from S₂ to S₁. 
C)remain at S₁. 
D)shift either to the left or the right, but it is impossible to say without more information.

Quizplus · Accepted Answer

The supply curve will shift from S₁ to S₂ because the price of the good has increased, which will encourage producers to supply more of the good.

-According to the Above Figure, Then the Supply Curve Will