Economics JAMB

The graph below shows?

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

Correct Answer:

Option C – a decrease in supply

Explanation

There is a decrease in the quantity supplied if the quantity of the commodity supplied decreases as a result of a decrease in price.

From the graph, a decrease in the price of the commodity from P1 to P2 brought about a corresponding decrease in the quantity supplied from 100 to 50 units.

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