Refer to the Graph Shown

question 13

Multiple Choice

Refer to the graph shown.If the quantity supplied increases from 2 to 4 when the price of CDs increases from $2.00 to $5.00, the response by producers would be shown by:

• A)a shift from S0 toS1.
• B)a shift from S1 toS0.
• C)a movement upward and to the right alongS0.
• D)a movement upward and to the right alongS1.

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Definitions:

Law Of Demand

The economic principle that, all else equal, an increase in the price of a good will decrease the quantity demanded, and conversely, a decrease in price will increase the quantity demanded.

Quantity

The amount or number of a material or immaterial entity that is measureable.

Equilibrium Price

The selling price where the amount of products offered is equal to the amount of products consumers want to buy.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a particular price over a specified period.