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 reduce the supply of the good, hence shift the supply curve to the left (from S1 to S2). Thus, the correct answer is D.

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