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Figure 3-8

question 209

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 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 D) E
-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?

Definitions:

Barriers To Entry

Economic or legal obstacles that prevent new competitors from easily entering an industry or area of business.

Product Substitutes

Goods or services that can be used in place of each other, where the increase in the price of one leads to an increase in demand for the other.

Oligopolists

Firms that are part of an oligopoly, a market structure characterized by a few companies dominating the market.

Equilibrium Price

The market price at which the quantity of goods supplied equals the quantity of goods demanded.