Because you understand the law of supply, you can deduce that the correct graphical representation of the supply for cds must moreover, you know that at a price of $10 per cd, the quantity is five million cds.

The answers are S1 where S1 is supply curve that has the potential to move to S2  and Quantity Supplied

Explanation:

Referring to the diagram below, an increase in supply occurs when the  supply curve shifts to the right as shown  in diagram below. The original demand and  supply curves equal D1 and S1,  respectively. Thus, the original  equilibrium equals E1, with a price and  quantity equal to P1 and Q1 respectively.  However, when the supply increases to  S2, the market moves to a new  equilibrium, E2, with equilibrium price  decreasing to P2 while equilibrium  quantity increases to Q2.

What is equilibrium: In economics as the may be, equilibrium is the circumstance in which market forces such as demand and supply are balanced. That is, there is an absence of external influences on the values of economic variables therefore making the process unchanged.

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