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

question 358

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

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Definitions:

Socialist Economy

An economic system where the means of production are owned and managed collectively or by the state, aiming for equal wealth distribution and reducing social class differences.

Capitalist Economy

An economic system where trade, industries, and the means of production are largely or entirely privately owned and operated for profit.

Welfare State

A governmental system that provides social and economic support to its citizens, including healthcare, education, and financial aid.

Telecommuting

Working from home while staying connected to the office through communications technology.