Answer to Question #316460 in Microeconomics for Iqbal

Question

Defi ne the concept of a supply schedule or curve. Show that an increase in supply means a rightward and downward shift of the supply curve. Contrast this with the rightward and upward shift of the demand curve implied by an increase in demand.

Answer 1

ceteris paribus, a supply curve is a graph showing how quantity supplied varies with Price changes.

from this graph the increase in quantity supplied is shown by S₁ indicating right and downward shift and vice versa.

in contrast,

this graph,the quantity demanded increase is shown by D₁ indicating right and upward shift and vice versa