Multiple Choice
Refer to the information provided in Figure 12.4 below to answer the question(s) that follow. Figure 12.4
There are two sectors in the economy, X and Y, and both are in long-run, zero-profit equilibrium at the intersections of S0 and D0.
-Refer to Figure 12.4. Assume consumer preference changes toward X and away from Y. Ceteris paribus, sector X will likely see ________ and sector Y will likely see ________.
A) capital inflow; capital outflow
B) capital outflow; capital inflow
C) capital inflow; no change in capital flows
D) no change in capital flows; capital outflow
Correct Answer:

Verified
Correct Answer:
Verified
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