Question

Which one of the following scenarios depicts the movement from A to B shown in the diagram below? 

Options

• Rise in supply of tomato due to an increase in its price.

• Rise in supply of t-shirts of brand Z following a fall in its price.

• Fall in supply of fertilisers due to reduction in subsidy by the government.

• Rise in supply of television by MG Electronics due to the use of Artificial Intelligence in its manufacturing.

Answer 1

Rise in supply of television by MG Electronics due to the use of Artificial Intelligence in its manufacturing.

Explanation: 

The diagram shows the entire supply curve shifting right from S₀ to S₁ so quantity supplied increases at the same price (movement from A to B), this is an increase in supply, not a movement along a curve.