3.5 Market Effects of Changes in Supply
Figure 3.4
-Figure 3.4 illustrates the supply of tacos. An increase in the supply of tacos is represented by a movement from

Question

3.5 Market Effects of Changes in Supply
  Figure 3.4
-Figure 3.4 illustrates the supply of tacos. An increase in the supply of tacos is represented by a movement from

Quizplus · Accepted Answer

The correct answer is D because an increase in supply is shown by a rightward shift of the supply curve. In Figure 3.4, the supply curve shifts from S₀ to S₁, indicating an increase in supply.