Figure 4-16

-Assume that Figure 4-16 shows the supply of orange juice.A decrease in the wage rate paid to workers in the orange juice industry will shift supply from
A)S₁ to S₂.
B)S₂ to S₁ .
C)S₃ to S₂.
D)S₃ to S₁ .

Question

Figure 4-16
 
-Assume that Figure 4-16 shows the supply of orange juice.A decrease in the wage rate paid to workers in the orange juice industry will shift supply from
A)S₁ to S₂. 
B)S₂ to S₁ . 
C)S₃ to S₂. 
D)S₃ to S₁ .

Quizplus · Accepted Answer

A decrease in the wage rate paid to workers in the orange juice industry will reduce the cost of production, leading to an increase in supply, shifting the supply curve from S₁ to S₂.

Figure 4-16 -Assume That Figure 4-16 Shows the Supply of Orange Juice.A