Answer to Question #205865 in Microeconomics for Thelma

Question

An increase in supply... (4 marks) a) indicates that more is supplied at higher prices. b) indicates that more is supplied at lower prices. c) indicates that more is supplied at all prices. d) is illustrated by an upward shift of the supply curve.

Answer 1

Answer to Q205865

An increase in supply indicates that more is supplied at high prices.

This is because when the price of a commodity rises, suppliers will take the advantage of the rise and supply more of the commodity.