Figure 3-11 -In Figure 3-11, suppose D₁ and S₁ indicate initial conditions in the market for kitchen cabinets. Which of the following would tend to cause the supply curve to shift from S₁ to S₂? A) the invention of "folding" plates and cups that take up substantially less storage space in the kitchen B) a decrease in consumer income C) a decrease in the price of wood, a resource used to produce kitchen cabinets D) an increase in the price of steel hinges, a resource used to produce kitchen cabinets

Question

Quizplus · Accepted Answer

A decrease in the price of wood, a resource used to produce kitchen cabinets, would reduce production costs, leading to an increase in supply, thus shifting the supply curve from S1 to S2.

Figure 3-11 -In Figure 3-11, Suppose D1 and S1 Indicate Initial Conditions

Figure 3-11 -In Figure 3-11, Suppose D₁ and S₁ Indicate Initial Conditions