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Refer to the Graph

Question 349

Multiple Choice

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


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

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