Exhibit 12-9 Refer to Exhibit 12-9.Using Graph C,which of the following statements is not true?

Question

Exhibit 12-9  Refer to Exhibit 12-9.Using Graph C,which of the following statements is not true?

Quizplus · Accepted Answer

Graph C shows an increase in supply, as evidenced by the shift of the supply curve from to _{. The increase in demand is also evident from the shift of the demand curve from D1U1B0 to D1U1B1. The equilibrium price in the market has increased from P₀ to P₁, which is indicated by the intersection of supply and demand curves moving upwards. The change in quantity supplied has also increased from Q₀ to Q₁, as evidenced by the movement along the supply curve from point A to point B. Therefore, the statement that is not true is option B, there has been no decrease in supply.}