-Refer to Exhibit 3-7

question 66

Multiple Choice

-Refer to Exhibit 3-7.If S₁ is the relevant supply curve,a decrease in the price of a resource that is necessary for the production of good X causes

• A) the supply of good X to shift from S₁ to S₂
• B) the supply of good X to shift from S₁ to S₃.
• C) a movement along S₁ perhaps from point A to point B.
• D) a movement along S₁ perhaps from point A to point C.
• E) no change in the supply of good X.