Figure 3-8

question 96

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 the price of oranges, a substitute for apples, decreases and the wages of apple workers increase, how will the equilibrium point change?

• A) The equilibrium point will move from A to E.
• B) The equilibrium point will move from A to B.
• C) The equilibrium point will move from A to C.
• D) The equilibrium will first move from A to B, then return to A.