​Figure 52

Multiple Choice

​Figure 5.2. The figure shows the supply and demand curves of a firm.
-Refer to figure 5.2. Which of the following is true?​

A) ​The supply curve of the product shifts to the left, with a fall in the cost of producing the commodity.
B) ​With a fall in the cost of production, sellers are willing to supply Q₁ units of the product at a price of P₂, which is lower than the initial price P.
C) ​With a fall in the cost of production, sellers are willing to supply Q units of the product at a price of P₂, which is lower than the initial price P.
D) ​There is an increase in the demand for the product with a fall in the cost of producing the commodity.
E) ​An increase in the cost of producing the commodity leads to an upward movement along the supply curve of the product.