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Do the decisions in questions 1-3 illustrate the price a change in supply? explain.

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Final answer:

The decisions in questions 1-3 illustrate changes in supply, such as an increase in supply resulting in a decrease in price and an increase in quantity supplied.

Step-by-step explanation:

The decisions in questions 1-3 illustrate changes in supply. In the first question, there is an increase in supply, indicated by a rightward shift on the graph. As a result, the price decreases and the quantity supplied increases. This is in line with the Law of Supply, which states that as the price of a product increases, the quantity supplied also increases.

In the second question, a change in tastes from traditional news sources to digital sources caused a change in demand. This is not a change in supply, as it does not directly affect the quantity of goods produced. Instead, it affects the consumers' preference for the product.

In the third question, an increase in the price of jet fuel affected the supply of air travel. This is shown as an upward or leftward shift in the supply curve. As the cost of producing air travel increases, suppliers are willing to supply less at any given price, resulting in a decrease in quantity supplied.

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User Justin Emlay
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