Refer to Figure 3-8

question 36

Multiple Choice

Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for apples 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 apples and a decrease in the price of oranges, a substitute for apples
• B) an increase in the wages of apple workers and an increase in the price of oranges, a substitute for apples
• C) an increase in the number of apple producers and a decrease in the number of apple trees as a result of disease
• D) a decrease in the wages of apple workers and an increase in the price of oranges, a substitute for apples

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Definitions:

Outstanding Voting

Refers to shares that are issued by a corporation, held by investors, and eligible to vote on corporate matters.

Consolidated Cost

The total cost of a project or investment after combining all individual costs and expenses.

Inventory Purchase Price

The cost incurred to acquire goods or materials held for sale or production in the business.