Refer to the figure above An increase in quantity supplied i

Refer to the figure above. An increase in quantity supplied is represented by a movement from S1 S2 0 Number of pizzas per week Q S2 to S3 ° S2 to S1. Point B to Point A along supply curve S2. Point B to Point C along supply curve S2

Solution

Option 3: Point B to Point A along the supply curve S2

Explanation: When there is a change in quantity supplied, there is a movement along the supply curve. On the other hand, where there is a change in supply, there is a shift of the supply curve.

Option 1 shows an increase in supply as the supply curve shifts towards the right. So, option 1 is invalid.

Option 2 shows a decrease in supply as the supply curve shifts towards the left. So, option 2 is invalid.

Option 3 shows an increase in the quantity supplied as there is an upward movement along the supply curve. So, the option 3 is valid.

Option 4 shows a decrease in the quantity supplied as there is a downward movement along the supply curve. So, the option 4 is invalid.