In the Figure Given Below, D₁ and S₁ Are the Original

question 80

Multiple Choice

In the figure given below, D₁ and S₁ are the original demand and supply curves.Figure 3.1

-Refer to Figure 3.1. Given D₁, if supply moves from S₁ to S₂ it implies:

• A) quantity supplied has increased.
• B) demand will decrease from B to A.
• C) a surplus will exist equal to AB.
• D) supply has decreased, and equilibrium price and equilibrium quantity will move to G and B respectively.
• E) supply has decreased, and equilibrium price and equilibrium quantity will move to E and A respectively.

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