Figure 2.5

-In Figure 2.5, which graph represents what might happen if there were an increase in the price of metal used in the production of bicycles?

Question

Figure 2.5
 
-In Figure 2.5, which graph represents what might happen if there were an increase in the price of metal used in the production of bicycles?

Quizplus · Accepted Answer

An increase in the price of metal used in the production of bicycles would increase the production costs for bicycles. This would likely lead to a decrease in the supply of bicycles, as it becomes more expensive for companies to produce them. Graph C typically represents a leftward shift in the supply curve, indicating a decrease in supply, which is consistent with the effects of an increase in production costs.

Figure 2.5 -In Figure 2.5, Which Graph Represents What Might Happen If