Figure 3-8
-Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D₁ and S₂ (point B) ) Which of the following changes would cause the equilibrium to change to point C?

Question

Figure 3-8

-Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D₁ and S₂ (point B) ) Which of the following changes would cause the equilibrium to change to point C?

Quizplus · Accepted Answer

A positive change in the technology used to produce apples and decrease in the price of oranges, a substitute for apples, would cause the supply curve to shift to the right (S₃) and the demand curve to shift to the left (D₂), resulting in a new equilibrium at point C.

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