Figure 4-26
-Refer to Figure 4-26.Which of the following movements would illustrate the effect in the market for bullet-proof vests of an increase in the price of Kevlar?

Question

Figure 4-26 
-Refer to Figure 4-26.Which of the following movements would illustrate the effect in the market for bullet-proof vests of an increase in the price of Kevlar?

Quizplus · Accepted Answer

An increase in the price of Kevlar, which is used to make bullet-proof vests, would increase the cost of production for the manufacturers, leading to a decrease in the supply of bullet-proof vests. This would cause a leftward shift of the supply curve from S1 to S2 and an increase in the equilibrium price from P1 to P2. The movement from point C to point D represents this shift in the market.

Figure 4-26 -Refer to Figure 4-26.Which of the Following Movements Would Illustrate