Refer to the Graph Shown

question 73

Multiple Choice

Refer to the graph shown. Suppose that at a price of $5.00, firm A is willing and able to supply 4 units and firm B is willing and able to supply 4 units. Which of the following statements is then true?

• A) Curve S0 shows the quantity supplied of firm A and firm B combined.
• B) Curve S1 shows the quantity supplied of firm A and firm B combined.
• C) The addition of firm B to the market causes a movement upward and to the right along S0.
• D) The addition of firm B to the market causes a movement upward and to the right along S1.

---

Definitions:

Express Agreement

A contract where the terms are clearly stated and verbally or in writing agreed upon by all parties.

Unregistered Partnership

A business partnership that has not been formally registered with state or local authorities, often affecting its legal rights and liabilities.

Contributory Negligence

A legal principle where the plaintiff's own negligence plays a role in the harm suffered, potentially reducing the compensation they can receive.

Statement of Defence

A formal document filed by the defendant in a lawsuit detailing their defenses or objections to the claims made in the statement of claim.