O Levels Economics (2281)•2281/12/O/N/24

Explanation
Price increase causes movement along the supply curve, but exact quantity change requires extrapolation not matching choices Steps:
- Identify supply at $12: 160 units from table.
- Observe pattern: supply increases by 40 units per 10 to $12: 120 to 160).
- Extrapolate to 6 from $12 implies +120 units (3 intervals × 40), so supply = 280 units.
- Note: table ends at 18, and 120-unit extension doesn't match any choice.
Why C is correct:
- Not applicable; no option fully aligns with law of supply (price ↑ → quantity supplied ↑ along curve).
Why the others are wrong:
- A: "Contract" implies decrease, but price ↑ causes extension (increase); movement up is right but quantity wrong.
- B: "Contract by 200" and inward shift contradict price ↑ effect; shifts require non-price factors.
- D: "Extend by 200" overstates extrapolated increase (actual +120); outward shift incorrect for price-only change.
Not enough information to select a matching option. Final answer: Not enough information.
Topic: Supply
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