Figure 3-8 -Refer to Figure 3-8.The Graph in This Figure Illustrates an Figure

question 72

Multiple Choice

Figure 3-8
-Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles 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 motorcycles and decrease in the price of motorcycle insurance,a complement to motorcycles.
• B)An increase in the wages of motorcycle workers and a decrease in the price of motorcycle insurance,a complement to motorcycles.
• C)An increase in the number of motorcycle producers and an increase in the number of consumers who prefer riding motorcycles.
• D)An increase in the wages of motorcycle workers and an increase in the price of motorcycle insurance,a complement to motorcycles.

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Definitions:

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