Figure 3-8 -Refer to Figure 3-8.The Graph in This Figure Illustrates an This

question 29

Multiple Choice

Figure 3-8

-Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D₂ and S₂ (point

• A)A positive change in the technology used to produce apples and decrease in the price of oranges, a substitute for apples.
• B)An increase in the wages of apple workers and a decrease in the price of oranges, a substitute for apples.
• C)An increase in the number of apple producers and a decrease in the number of apple trees as a result of disease.
• D)A decrease in the wages of apple workers and an increase in the price of oranges, a substitute for apples.
• E). Which of the following changes would cause the equilibrium to change to point A?

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Definitions:

Par Value

The nominal value of a bond or stock as declared by the issuer, which might not represent its actual market value.

Exchange Rate

The price at which one currency can be exchanged for another currency in the foreign exchange market.

Loss

A financial condition where expenses exceed income, leading to a negative net income.

Euros

The official currency of the Eurozone, used by 19 of the 27 European Union countries.