Anudeep asked in Social ScienceEconomics · 5 months ago

Another Microeconomics Question, please help... Thanks!!?

Use the graph to answer the question.

Which of the following best explains the graph? ( Hint: The answer is NOT c ).

a) Demand decreases and causes producers to supply less of the product.

b) The cost of producing the product goes up and causes their prices to rise.

c) The number of sellers increases and causes the price of the product to rise.

d) Consumers decide to buy less of the product so the price of the product goes up.

Attachment image

2 Answers

Relevance
  • Oiy
    Lv 4
    5 months ago
    Best answer

    The answer is B because it is all about supply which shifted to the left. C is also about supply shift, but it shifts to the right. The rests are about demand which is not relevant to the graph.

  • JuanB
    Lv 7
    5 months ago

    b) The cost of producing the product goes up and causes their prices to rise.

Still have questions? Get answers by asking now.