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JAMB Economics 2001 Question 4

Question 4

Theory of Supply

For a supply curve, an increase in the price of a commodity will result in

  1. A.a decrease in supply
  2. B.a decrease in the quantity supplied
  3. C.an increase in supply
  4. D.an increase in the quantity supplied
Show the answer and explanation

Answer: D (an increase in the quantity supplied)

Explanation

A change in the good's own price causes a movement along the supply curve, so a higher price raises the quantity supplied (not supply itself).