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Use the Figure Below to Answer the Following Question(s)

Question 311

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Use the figure below to answer the following question(s) .
Figure 3-8
Use the figure below to answer the following question(s) . Figure 3-8 In Figure 3-8, if the initial demand and supply for soybeans were D <sub>1</sub> and S <sub>1</sub>, how would a decrease in the cost of producing soybeans affect the market for soybeans? A) Demand would increase to D <sub>2</sub>, price would increase to P <sub>2</sub>, and the quantity would increase to S . B) Supply would increase to S <sub>2</sub>, price would decrease to P <sub>0</sub>, and the quantity would increase to S . C) Both demand and supply would increase so the price would remain at P <sub>1</sub>, but the quantity would increase to T . D) None of the above would occur.
In Figure 3-8, if the initial demand and supply for soybeans were D 1 and S 1, how would a decrease in the cost of producing soybeans affect the market for soybeans?


A) Demand would increase to D 2, price would increase to P 2, and the quantity would increase to S .
B) Supply would increase to S 2, price would decrease to P 0, and the quantity would increase to S .
C) Both demand and supply would increase so the price would remain at P 1, but the quantity would increase to T .
D) None of the above would occur.

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