Question 10
Theory of SupplyIf more of a commodity is supplied at the same price, this will be shown as
- A.an upward movement along its supply curve
- B.a new supply curve positioned to the left
- C.a new supply curve positioned to the right
- D.a downward movement along its supply curve
Show the answer and explanation
Answer: C (a new supply curve positioned to the right)
Explanation
More at the same price is an increase in supply: the curve shifts right.