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A-Level Economics · Shift in supply diagram question

What happens to price and quantity after the shift?

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The diagram

The answer

Price falls from £5 to £4 and quantity rises from 5 to 6. Supply right → price down, quantity up. Demand right → price up, quantity up. That one contrast identifies which curve moved in any extract. Read the new crossing off the diagram: E (£5, 5) becomes F (£4, 6). Price DOWN and quantity UP is the signature of a rightward supply shift — and it is how you prove which curve moved when the extract does not tell you.

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This is one of 6 questions on the shift in supply diagram — every corner lettered, every wrong answer diagnosed.

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