Figure 3-8 -Refer to Figure 3-8.The Graph in This Figure Illustrates an Figure

Multiple Choice

Figure 3-8
-Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D₁ and S₂ (point B) .If there is an increase in number of companies producing motorcycles and a decrease in income (assume motorcycles are a normal good) ,the equilibrium could move to which point?

A) A
B) B
C) C
D) E