The supply curve moves from S to S₁ as shown. Which event could cause this? Two supply curves: S (Qs = 5P) and S₁ (Qs = 20 + 5P), to its right. At a price of ₹6, S gives 30 units and S₁ gives 50. An arrow points from S to S₁.

The supply curve moves from S to S₁ as…

The supply curve moves from S to S₁ as shown.

Question 29

MediumOriginal question

The supply curve moves from S to S₁ as shown. Which event could cause this?

The price of the good risesCorrect answerYour answerWages of workers riseCorrect answerYour answerMore firms enter the industryCorrect answerYour answerA per-unit tax is imposedCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

At ₹6, supply rises from 30 to 50: more is offered at the same price, so supply has increased.
More firms add to market supply. Higher wages or a tax would shift it left; own price moves along it.

Concept: Increase in supply
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.

The supply curve moves from S to S₁ as shown.

Question 29

Explanation