Assertion (A): An increase in supply is caused by a rise in the good's own price.
Reason (R): A rise in the good's own price causes an extension of supply.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

A is false: an increase in supply is a rightward shift, caused by something other than own price.
R is true: own price moves sellers along the curve.

Concept: Increase versus extension of supply
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsDeterminants of supply; movement and shift

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

Assertion (A): An increase in supply is caused by a rise in the good's own price.Reason (R): A rise in the good's own price causes an extension of supply.

Explanation

Assertion (A): An increase in supply is caused by a rise in the good's own price.
Reason (R): A rise in the good's own price causes an extension of supply.