eBookReferencesItem 3 Assume that the graphs show a competitive market for the product stated in the question. A set of 4 graphs shows the variation of price on vertical axis with quantity on horizontal axis.In graph 1, an increasing line, S intersects two decreasing lines, D1 and D2 at points E1 and E2, respectively. A positive shift from D1 to D2 (to the right) is shown with an increase in price from P1 to P2 and increase in quantity from q1 to q2. In graph 2, an increasing line, S intersects two decreasing lines, D1 and D2 at points E1 and E2, respectively. A negative shift from D1 to D2 (to the left) is shown with a decrease in price from P1 to P2 and decease in quantity from q1 to q2. In graph 3, two increasing lines, S1 and S2 intersects a decreasing line, D at points E1 and E2, respectively. A positive shift from S1 to S2 (to the right) is shown with a decrease in price from P1 to P2 and increase in quantity from Q1 to Q2. In graph 4, two increasing lines, S1 and S2 intersects a decreasing line, D at points E1 and E2