In the Following Graph, Q_S1 and Q_S2 Represent the Supply

question 36

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 supply curve Q_S1 is elastic and Q_S2 is inelastic.
• B) As price increases along the supply curve Q_S1, output will increase more than
• C) An increase in demand will lead to a relatively larger change in output along Q_S2.
• D) A decrease in demand from Q_D2 to Q_D1 leads to a rise in the equilibrium price.

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Definitions:

Quota

A limited or fixed number or amount of something, especially one officially allocated.

Specified Time Range

A defined period during which certain actions are taken or certain conditions apply, often set for achieving goals or completing projects.

Extrinsic Reward

A reward given to an individual that comes from an external source, typically in the form of tangible rewards or public recognition, to motivate behavior.

Praise

The expression of approval, admiration, or commendation directed towards someone for their achievements or qualities.