Question

What change is taking place on this graph?

a decrease in supply
a decrease in demand
an increase in supply
an increase in demand

Answer 1

I can't see the graph — could you upload it or describe what moved (which curve and which direction)?

If you want to decide on your own, use these rules:

- If the demand curve shifts to the right (D1 → D2 rightward), that's an increase in demand. If it shifts left, that's a decrease in demand.
- If the supply curve shifts to the right (S1 → S2 rightward), that's an increase in supply. If it shifts left, that's a decrease in supply.
- A movement along a curve (up or down the same demand or supply curve) is a change in quantity demanded or supplied, not a change in demand or supply.

So identify which labeled curve moved and whether it moved left or right, then choose:
- supply curve right → "an increase in supply"
- supply curve left → "a decrease in supply"
- demand curve right → "an increase in demand"
- demand curve left → "a decrease in demand"

If you paste the graph or tell me which curve shifted and which way, I’ll pick the correct answer.