-Refer to the above diagram, in which S₁ and D₁ represent the original supply and demand curves and S₂ and D₂ the new curves. In this market the indicated shift in supply may have been caused by:

Question

-Refer to the above diagram, in which S<sub>1</sub> and D<sub>1</sub> represent the original supply and demand curves and S<sub>2</sub> and D<sub>2</sub> the new curves. In this market the indicated shift in supply may have been caused by: A) an increase in the wages paid to workers producing this good. B) the development of more efficient machinery for producing this good. C) this product becoming less fashionable. D) an increase in consumer incomes.

Quizplus · Accepted Answer

The shift from S1 to S2 indicates an increase in supply, which can be caused by more efficient machinery reducing production costs.

-Refer to the Above Diagram, in Which S1 and D1

-Refer to the Above Diagram, in Which S₁ and D₁