In the graph, the price rises from ₹4 to ₹8. This is shown as An upward-sloping supply curve S, Qs = 5P: point A at ₹4 and 20 units, point B at ₹8 and 40 units.

In the graph, the price rises from ₹4 to ₹8.

Question 27

MediumOriginal question

In the graph, the price rises from ₹4 to ₹8. This is shown as

An upward-sloping supply curve S, Qs = 5P: point A at ₹4 and 20 units, point B at ₹8 and 40 units.

a shift of the supply curve to the rightCorrect answerYour answera contraction of supplyCorrect answerYour answera decrease in supplyCorrect answerYour answera movement up the supply curve from A to B: an extension of supplyCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

A change in the good's own price moves sellers along the same supply curve.
Quantity supplied rises from 20 to 40: an extension of supply.

Concept: Movement along the supply curve
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsDeterminants of supply; movement and shift

Practise this chapter →

Ten questions from Perfect Competition & Supply, at your own pace.

Practise this chapter →

Ten questions from Perfect Competition & Supply, at your own pace.

In the graph, the price rises from ₹4 to ₹8.

Question 27

Explanation