are four supply curve diagrams each of which represents a ch

are four supply curve diagrams, each of which represents a change in supply or a change in quantily supplied s2 s, Quantity Supplied atch each scenario with the appropriate diagram a. To take advantage of high prices for snow shovels during a snowy winter, Alexander Shovels, Inc decides to increase output b. The success of the Apple iPhone leads more firms to begin producing smartphones C.

Solution

A.

4

The supply increases with increase in the price. So, the upward movement will be along the supply curve to provide increased supply.

B.

3

New firms enter the market and supply increases. I will make supply curve to shift in the rightward direction.

C.

1

Due to earthquake and tsunami, the supply comes down and it takes a leftward shift in the market supply curve.