Refer to the Graph Below

question 129

Multiple Choice

Refer to the graph below. If the production possibility curve shifts along the Good Y axis, which point will remain as a point of efficiency?

• A)A
• B)B
• C)C

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Definitions:

Equilibrium Price

The price at which the quantity of a good demanded equals the quantity supplied, leading to market stability.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price.

Long Run

A period in which all factors of production and costs are variable, allowing for full adjustment to change.

Supply Curves

Graphical representations illustrating the relationship between the price of a good and the quantity of the good that producers are willing to supply.