Figure 3-2 -Refer to Figure 3-2.An increase in the price of the product would be represented by a movement from A)A to B. B)B to A. C)S₁ to S₂. D)S₂to S₁.

Question

Quizplus · Accepted Answer

An increase in the price of the product would shift the supply curve to the left, from S1 to S2. This would cause the equilibrium price to rise from P1 to P2 and the equilibrium quantity to fall from Q1 to Q2.

Figure 3-2 -Refer to Figure 3-2.An Increase in the Price of the Price