Figure 3-8 -Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D₂ and S₂ (point A)The equilibrium point will move from E to A. B)The equilibrium point will move from E to B. C)The equilibrium point will move from E to C. D)The equilibrium point will remain at E. E).If the technology to produce motorcycles improves and the number of buyers increases,how will the equilibrium point change?

Question

Quizplus · Accepted Answer

If the technology to produce motorcycles improves, the supply curve will shift to the right. If the number of buyers increases, the demand curve will shift to the right. Both shifts will result in a new equilibrium point at the intersection of the new demand and supply curves, which is point A.

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