The graph below represents _______?

A. a decrease in quantity supplied
B. an increase in supply
C. a decrease in supply
D. an increase in quantity supplied

Correct Answer:

Option D – an increase in quantity supplied

Explanation

There is an increase in the quantity supplied if the quantity supplied increases as a result of an increase in price of the commodity.

From the graph, an increase in the price of the commodity from p1 to p2 brought about a corresponding increase in quantity supplied from q1 to q2.