The table given below represents the supply schedules of the only three DVD producers in the market for DVDs.
Table 3.2

-According to Table 3.2,if the supply schedules 1,2,and 3 are the market supply schedules for DVDs in three different time periods,what could explain the change from the Supply 1 schedule to the Supply 2 schedule?

Question

The table given below represents the supply schedules of the only three DVD producers in the market for DVDs. 
Table 3.2

-According to Table 3.2,if the supply schedules 1,2,and 3 are the market supply schedules for DVDs in three different time periods,what could explain the change from the Supply 1 schedule to the Supply 2 schedule?

Quizplus · Accepted Answer

The change from Supply 1 schedule to Supply 2 schedule shows a decrease in the quantity supplied at each price point, which implies a decrease in supply. Since there is no evidence of a change in demand, the only plausible explanation for this decrease in supply is an increase in the cost of producing DVDs. Therefore, choice E is the best answer.

The Table Given Below Represents the Supply Schedules of the Only