Answer to Question #205847 in Economics for Denzel Grootboom

Question

An increase in supply.

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

An increase in supply indicates that more is supplied at lower prices and is illustrated by a downward shift of the supply curve.

So, the only correct answer is b).