Figure 3-8

-Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D₂ and S₂ (point
A)a positive change in the technology used to produce apples and decrease in the price of oranges, a substitute for apples
B)an increase in the wages of apple workers and a decrease in the price of oranges, a substitute for apples
C)an increase in the number of apple producers and a decrease in the number of apple trees as a result of disease
D)a decrease in the wages of apple workers and an increase in the price of oranges, a substitute for apples
E). Which of the following changes would cause the equilibrium to change to point A?

Question

Figure 3-8
 
-Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D₂ and S₂ (point
A)a positive change in the technology used to produce apples and decrease in the price of oranges, a substitute for apples 
B)an increase in the wages of apple workers and a decrease in the price of oranges, a substitute for apples 
C)an increase in the number of apple producers and a decrease in the number of apple trees as a result of disease 
D)a decrease in the wages of apple workers and an increase in the price of oranges, a substitute for apples 
E). Which of the following changes would cause the equilibrium to change to point A?

Quizplus · Accepted Answer

A decrease in the wages of apple workers would reduce production costs, shifting the supply curve to the right. An increase in the price of oranges, a substitute, would increase demand for apples, shifting the demand curve to the right. Both changes would move the equilibrium to point A.

Figure 3-8 -Refer to Figure 3-8.The Graph in This Figure Illustrates an This