Figure 3-2

-Refer to Figure 3-2.An increase in the price of substitutes in production would be represented by a movement from
A)A to B.
B)B to A.
C)S₁ to S₂.
D)S₂ to S₁.

Question

Figure 3-2
 
-Refer to Figure 3-2.An increase in the price of substitutes in production would be represented by a movement from
A)A to B. 
B)B to A. 
C)S₁ to S₂. 
D)S₂ to S₁.

Quizplus · Accepted Answer

An increase in the price of substitutes in production would lead to a decrease in supply. This means that the supply curve would shift leftward from S₂ to S₁.

Figure 3-2 -Refer to Figure 3-2.An Increase in the Price of Substitutes