Figure 3-8

question 13

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 D1 and S1 (point A) .If there is a surplus of motorcycles 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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Definitions:

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