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Refer to the Graph

Question 348

Multiple Choice

Refer to the graph. Other things equal, a decrease in the price of a substitute resource would cause a A) move from a to b on D₁. B) shift from D₂ to D₃, assuming the output effect exceeds the substitution effect. C) shift from D₃ to D₂, assuming the output effect exceeds the substitution effect. D) move from b to a on D₁. Refer to the graph. Other things equal, a decrease in the price of a substitute resource would cause a


A) move from a to b on D₁.
B) shift from D₂ to D₃, assuming the output effect exceeds the substitution effect.
C) shift from D₃ to D₂, assuming the output effect exceeds the substitution effect.
D) move from b to a on D₁.

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