Exhibit 3-3

Good Y

Refer to Exhibit 3-3. A movement from point Z to point W would have been the result of
A)a reduction in the price of good Y.
B)an increase in taxes paid by the producers of good Y.
C)a decline in technology in the production of good Y.
D)an increase in the number of buyers of good Y.

Question

Exhibit 3-3

Good Y
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Refer to Exhibit 3-3. A movement from point Z to point W would have been the result of
A)a reduction in the price of good Y. 
B)an increase in taxes paid by the producers of good Y. 
C)a decline in technology in the production of good Y. 
D)an increase in the number of buyers of good Y.

Quizplus · Accepted Answer

Point Z represents a higher price for good Y, while point W represents a lower price for good Y. Therefore, a movement from point Z to point W would indicate a reduction in the price of good Y.