In the Following Graph, Q_S1 and Q_S2 Represent the Supply

question 28

Multiple Choice

In the following graph, Q_S1 and Q_S2 represent the supply curves and Q_D1 and Q_D2 represent the demand curves. Refer to the graph to answer the question:
Which of the following statements is true?

• A) The demand curve Q_D1 is more elastic than the demand curve Q_D2.
• B) The supply curve Q_S1 is less elastic than the supply curve Q_S2.
• C) An increase in supply will lead to a relatively smaller change in output along Q_D1.
• D) A decrease in supply from Q_S2 to Q_S1 will lead to a fall in the market price.

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Definitions:

Icarus

In Greek mythology, a young man who attempted to escape Crete by wings made of feathers and wax, but flew too close to the sun, causing his demise.

Aesop's Fable

A collection of short moral stories attributed to Aesop, a storyteller believed to have lived in ancient Greece.

Reflection

The process of serious thought or consideration, often involving the examination of one's own beliefs, actions, and experiences.

Bridge

A structure built to span a physical obstacle, such as a body of water or road, to provide passage over it.