...the supply curve for SUV? The supply curve shows the number of cars that firms produce and sell as a function of the price that consumers pay. Illustrate what would happen if the government decided to give a subsidy to the producers of the cars. (For example, the government offers to pay the producers $500 for every SUV produced and sold.)
Option 1: Place one supply curve on the graph and label appropriately. Place gray drop lines to indicate the initial point along the supply curve, and place black drop lines to indicate the new point.
Option 2: Place two supply curves on the graph, an initial supply curve plus a new curve, illustrating a shifted curve. Label the initial curve S1 and the shifted curve S2. Do not place any dashed drop lines on the graph.
Option 1: Place one supply curve on the graph and label appropriately. Place gray drop lines to indicate the initial point along the supply curve, and place black drop lines to indicate the new point.
Option 2: Place two supply curves on the graph, an initial supply curve plus a new curve, illustrating a shifted curve. Label the initial curve S1 and the shifted curve S2. Do not place any dashed drop lines on the graph.