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Refer to the Above Graph

Question 103

Multiple Choice

  Refer to the above graph.What will shift D<sub>1</sub> to D<sub>2</sub>? A)  An increase in the price of a complementary input B)  A decrease in the demand for the product produced by the labor C)  An increase in the price of a substitute input (if the output effect is greater than the substitution effect)  D)  An increase in the price of a substitute input (if the substitution effect is greater than the output effect) Refer to the above graph.What will shift D1 to D2?


A) An increase in the price of a complementary input
B) A decrease in the demand for the product produced by the labor
C) An increase in the price of a substitute input (if the output effect is greater than the substitution effect)
D) An increase in the price of a substitute input (if the substitution effect is greater than the output effect)

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