Question

Figure 4-4

Refer to Figure 4-4. The movement from point A to point B on the graph is called

a. an increase in the quantity supplied.

b. a decrease in the quantity supplied.

c. a decrease in supply.

d. an increase in supply.

Answer 1

Ans. Since the figure is not given i cannot tell what the correct answer is but i can give some kind of a logical concept.

If there is a movement along the curve then it is a change in the quantity supplied. When there is an upward movement along the supply curve then there is an increase in quantity supplied and when there is a downward movement along the supply curve then there is a decrease in quantity supplied.

When there is a leftward shift of the supply curve then there is a decrease in supply and when there is a rightward shift then there is an increase in supply.