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