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

question 101

Multiple Choice

Figure 3-8
- Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D₂ and S₁ (point C) . Which of the following changes would cause the equilibrium to change to point B?

• A) a positive change in the technology used to produce motorcycles and decrease in the price of motorcycle insurance, a complement to motorcycles
• B) an increase in the wages of motorcycle workers and a decrease in the price of motorcycle insurance, a complement to motorcycles
• C) an increase in the number of motorcycle producers and an increase in the number of consumers who prefer riding motorcycles
• D) an increase in the wages of motorcycle workers and an increase in the price of motorcycle insurance, a complement to motorcycles