Figure 3-8

question 206

Multiple Choice

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 D₁ and S₁ (point A) If there is an increase in the price of fertiliser 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.

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