Figure 3.8

question 192

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

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Definitions:

Competitiveness

The ability of a company, sector, or country to produce goods or services that meet the test of international markets while simultaneously maintaining or expanding the real incomes of its citizens.

Oligopoly

A market structure characterized by a small number of firms that have significant influence over price and other market factors.

Measures

Quantitative or qualitative assessments used to evaluate, compare, and track performance or production.

Cigarette Company

A business entity that manufactures, markets, and sells cigarettes and possibly other tobacco products.