Use the Graph to Answer the Question About the Labor

Multiple Choice

Use the graph to answer the question about the labor resource market faced by producers of good X. What will shift D ₁ to D ₂?

A) an increase in the price of a substitute input (if output effect > substitution effect)
B) a decrease in the price of a substitute input (if substitution effect > output effect)
C) a decrease in the price of a substitute input (if output effect > substitution effect)
D) an increase in the price of a complementary resource