Question

Observe the following diagrams and answer the questions given below:

Questions:

1. Diagram ‘A’ represent a ______ in supply. [1]
2. Diagram ‘B’ represents a ______ in supply. [1]
3. In diagram ‘A’, the supply curve shifts to the ______ side of the original supply curve. [1]
4. In diagram ‘B’, the supply curve shifts to the ______ side of the original supply curve. [1]

Answer 1

1. Diagram ‘A’ represent a increase in supply.
2. Diagram ‘B’ represents a decrease in supply.
3. In diagram ‘A’, the supply curve shifts to the right side of the original supply curve.
4. In diagram ‘B’, the supply curve shifts to the left side of the original supply curve.