Refer to the Information Provided in Figure 12

question 29

Multiple Choice

Refer to the information provided in Figure 12.4 below to answer the question(s) that follow. Figure 12.4
There are two sectors in the economy, X and Y, and both are in long-run, zero-profit equilibrium at the intersections of S^{0 and D0.}
-Refer to Figure 12.4. Assume consumer preference changes toward X and away from Y. Ceteris paribus, sector X will likely see ________ and sector Y will likely see ________.

• A) capital inflow; capital outflow
• B) capital outflow; capital inflow
• C) capital inflow; no change in capital flows
• D) no change in capital flows; capital outflow

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