Question

Graph titled Quantity Supplied versus Price. The x axis is labeled in 500 unit increments from 0 to 3000. Y axis goes from 0 to 0.30 dollars in increments of 0.05. A blue line starts at 500, 0.05 and ascends at an angle upward to 2500, 0.25.

Which scenario does this graph illustrate? (4 points)

Companies need to maximize production, so they will produce less and charge more.

Companies want to make money, so they increase production as price increases.

Consumers need to spend wisely, so they will purchase more goods at a lower cost.

Consumers want a good deal and will pay more money for a quality product.

Answer 1

An increase in demand and a decrease in supply

Step-by-step explanation:

The point of equilibrium is the meeting point of both demand and supply. in this case the demand curve shift rightward from the original demand curve DoDo to D1D1,the supply curve move leftward from SoSo to S1S1 .These changes in demand and supply curve will make equilibrium price to rise from P1 to P2 while equilibrium point moves from Eo to E1.