Figure 3-8

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 S1 (point A) .If the price of motorcycle engines increases,and the wages of motorcycle workers increase,how will the equilibrium point change?

A) The equilibrium point will move from A to E.

B) The equilibrium point will move from A to B.
C) The equilibrium point will move from A to C.
D) The equilibrium will first move from A to B,then return to A.