Question

Study the following diagram and answer the questions:

Questions:

1. When the price rises from 10 to 15, supply rises from 12 to `square`.
2. When the price falls from 25 to 20, supply falls from 30 to `square`.
3. The movement of the equilibrium point from B to C indicates the `square` of supply.
4. The movement of the equilibrium point from E to D indicates the `square` of supply.

Answer 1

1. When the price rises from 10 to 15, supply rises from 12 to 18.
2. When the price falls from 25 to 20, supply falls from 30 to 24.
3. The movement of the equilibrium point from B to C indicates the expansion of supply.
4. The movement of the equilibrium point from E to D indicates the contraction of the supply.