Refer to the graph. Other things equal, an increase in the price of substitute resource would cause a
A)shift from D₂ to D₃, assuming the substitution effect exceeds the output effect.
B)move from a to b on D₁.
C)move from b to a on D₁.
D)shift from D₃ to D₂, assuming the substitution effect exceeds the output effect.

Question

Refer to the graph. Other things equal, an increase in the price of substitute resource would cause a
A)shift from D₂ to D₃, assuming the substitution effect exceeds the output effect. 
B)move from a to b on D₁. 
C)move from b to a on D₁. 
D)shift from D₃ to D₂, assuming the substitution effect exceeds the output effect.

Quizplus · Accepted Answer

The Answer of  Refer to the graph. Other things equal, an increase in the price of substitute resource would cause a
A)shift from D₂ to D₃, assuming the substitution effect exceeds the output effect. 
B)move from a to b on D₁. 
C)move from b to a on D₁. 
D)shift from D₃ to D₂, assuming the substitution effect exceeds the output effect.

Refer to the Graph