Figure 4-16

-Assume that Figure 4-16 shows the supply of orange juice.A decrease in the wage rate paid to workers in the orange juice industry will shift supply from
A) S1 to S₂.
B) S₂ to S1.
C) S₃ to S₂.
D) S₃ to S1.

Question

Figure 4-16
 
-Assume that Figure 4-16 shows the supply of orange juice.A decrease in the wage rate paid to workers in the orange juice industry will shift supply from
A) S1 to S₂. 
B) S₂ to S1. 
C) S₃ to S₂. 
D) S₃ to S1.

Quizplus · Accepted Answer

A decrease in the wage rate paid to workers in the orange juice industry will make it less expensive to produce orange juice, which will lead to an increase in supply.

Figure 4-16 -Assume That Figure 4-16 Shows the Supply of Orange Juice.A