Figure 6-9

In 1983, government price supports raised the price of sugar above its equilibrium value. Which graph in Figure 6-9 illustrates the impact of sugar price supports on the sugar substitute fructose?
A)1
B)2
C)3

Question

Figure 6-9

In 1983, government price supports raised the price of sugar above its equilibrium value. Which graph in Figure 6-9 illustrates the impact of sugar price supports on the sugar substitute fructose?
A)1 
B)2 
C)3

Quizplus · Accepted Answer

Graph 3 shows an increase in the price of sugar which would lead to an increase in the price of its substitutes, such as fructose. The increase in price of fructose is shown by the shift from S1 to S2.

Figure 6-9 In 1983, Government Price Supports Raised the Price of Sugar