Refer to the above diagram, which shows demand and supply conditions in the competitive market for product X. Given D0, if the supply curve moved from S0 to S1, then:
A. there has been an increase in the quantity supplied.
B. supply has increased and price has risen to 0G.
C. supply has increased and equilibrium quantity has decreased.
D. supply has decreased and equilibrium quantity has decreased.
Answer: D
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