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Use the Figure Below to Answer the Following Questions

Question 108

Multiple Choice

Use the figure below to answer the following questions. Use the figure below to answer the following questions.   Figure 3.5.1 -Initially,the demand curve for good A is D<sub>2</sub> in Figure 3.5.1.Suppose good B is a substitute for good A.If the price of B falls A) the price of A will rise. B) there will be a surplus of good A at P<sub>2</sub>. C) the demand curve for good A will shift from D<sub>2</sub> to D<sub>3</sub>. D) the equilibrium quantity of good A will increase. E) all of the above are true except B. Figure 3.5.1
-Initially,the demand curve for good A is D2 in Figure 3.5.1.Suppose good B is a substitute for good A.If the price of B falls


A) the price of A will rise.
B) there will be a surplus of good A at P2.
C) the demand curve for good A will shift from D2 to D3.
D) the equilibrium quantity of good A will increase.
E) all of the above are true except B.

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