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Figure 3-8

question 175

Multiple Choice

Figure 3-8 Figure 3-8   -Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for sugar at the intersection of D<sub>1</sub> and S<sub>1</sub> (point A) . If there is an increase in the price of fertilizer used on sugar cane and there is a decrease in tastes for sugar-sweetened soft drinks, how will the equilibrium point change? A)  The equilibrium point will move from A to B. B)  The equilibrium point will move from A to C. C)  There will be no change in the equilibrium point. D)  The equilibrium point will move from A to E.
-Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for sugar at the intersection of D1 and S1 (point A) . If there is an increase in the price of fertilizer used on sugar cane and there is a decrease in tastes for sugar-sweetened soft drinks, how will the equilibrium point change?


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