Figure 3-2
-Refer to Figure 3-2. An increase in the price of substitutes in production would be represented by a movement from

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) S₂to S₁.

Quizplus · Accepted Answer

An increase in the price of substitutes in production would cause producers to switch to producing more of the substitute good, leading to a decrease in supply of the original good, represented by a shift from S₂ to S₁.

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