-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

Quizplus · Accepted Answer

The supply curve will shift from S₁ to S₂ because the increase in the price of the good will make it more profitable for producers to supply the good, leading to an increase in the quantity supplied at each price.

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