Exhibit 3-2 Good X -Refer to Exhibit 3-2.Which of the following would result in a movement from point A on D₁ to point B on D₂? A)There was a decrease in the price of a substitute for good X. B)There was an increase in the price of a complement to good X. C)There was a decline in technology in the production of good X. D)There was an increase in the price of a substitute for good X.

Question

Quizplus · Accepted Answer

An increase in the price of a substitute for good X would lead to an increase in demand for good X, causing a shift from D1 to D2.