Figure 4-21

-Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for wedding cakes resulting from a decrease in the price number of pastry chefs?

Question

Figure 4-21
 
-Refer to Figure 4-21.Which of the following movements would illustrate the effect in the market for wedding cakes resulting from a decrease in the price number of pastry chefs?

Quizplus · Accepted Answer

A decrease in the number of pastry chefs will shift the supply curve to the left (from S1 to S2), leading to an increase in the equilibrium price (from P1 to P2) and a decrease in the equilibrium quantity (from Q1 to Q2). This movement is illustrated by a shift from point C to point D. Points A and B do not show any effects of a decrease in the number of pastry chefs on the market for wedding cakes.

Figure 4-21 -Refer to Figure 4-21.Which of the Following Movements Would Illustrate