Figure 3-2

-Refer to Figure 3-2.A decrease in the price of substitutes in production would be represented by a movement from
A) A to B.
B) B to A.
C) S₁ to S₂.
D) S₂ to S₁.

Name: Figure 3-2 -Refer to Figure 3-2.A decrease in the price of substitutes in production would be represented by a movement from A) A to B. B) B to A. C) S₁ to S₂. D) S₂ to S₁.
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Question

Figure 3-2
 
-Refer to Figure 3-2.A decrease in the price of substitutes in production would be represented by a movement from
A) A to B. 
B) B to A. 
C) S₁ to S₂. 
D) S₂ to S₁.

Quizplus · Accepted Answer

A decrease in the price of substitutes in production would shift the production possibilities curve outward, from S₁ to S₂.

Figure 3-2 -Refer to Figure 3-2.A Decrease in the Price of Substitutes