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OK < Assigned as Ho @ Assign. #2 Q. 14 Refer to Figure 4-8. The movement from Point A to Point B represents a(n) Figure 4-8 Price 10 1 2 3 5 6 78 Quaxtity
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Answer #1

The movement from point point A to point B represents a contraction in supply.

If we move from one price quantity combination to another price quantity combination along a supply curve ,the movement along the supply curve shows change in quantity supplied along with change in the price of the product.In the fig , if we move from B to A along the supply curve it indicates a rise in quantity supplied from 2 to 5 with rise in the price from 2 to 5. This is extension in supply.Similarly a fall in the quantity supplied from 5 to 2 with fall in the price from 5 to 2 would mean contraction in supply.

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