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

question 114

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 D₁ and S₁ (point A) If there is an increase in the wages of apple workers and an increase in the price of oranges, a substitute for apples, the equilibrium could move to which point?

• A) none of the points shown
• B) B
• C) C
• D) E

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Definitions:

Economy's Total Output

The total value of all goods and services produced within an economy over a specific period, often measured as Gross Domestic Product (GDP).

Government Purchases

Expenditures by government entities for goods and services that are directly consumed or used in providing public services.

Resources

The total means available for economic and political development, such as mineral wealth, labor force, and armaments.

Government Purchases

Expenditures by government bodies on goods and services that directly absorb resources or satisfy human wants.