Figure 3-8
-Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for sugar at the intersection of D1 and S2 (point
A) The equilibrium point will move from B to A.
B) The equilibrium point will move from B to C.
B). If there is a decrease in the price of fertilizer used on sugar cane and there is a decrease in tastes for sugar-sweetened soft drinks, how will the equilibrium point change?
C) There will be no change in the equilibrium point.
D) The equilibrium point will move from B to E.

Question

Figure 3-8 
-Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for sugar at the intersection of D1 and S2 (point
A) The equilibrium point will move from B to A. 
B) The equilibrium point will move from B to C. 
B). If there is a decrease in the price of fertilizer used on sugar cane and there is a decrease in tastes for sugar-sweetened soft drinks, how will the equilibrium point change? 
C) There will be no change in the equilibrium point. 
D) The equilibrium point will move from B to E.

Quizplus · Accepted Answer

A decrease in the price of fertilizer will increase the supply of sugar (shift the supply curve right), and a decrease in tastes for sugar-sweetened soft drinks will decrease the demand for sugar (shift the demand curve left). The new equilibrium will be at the intersection of the new supply and demand curves, which is point C.

Figure 3-8 -Refer to Figure 3-8. the Graph in This Figure Illustrates