ABThe equilibrium point will move from C to E.DThe equilibrium point will move from C to B.CThe equilibrium point will move from C to A.The equilibrium will first move from C to A, thenreturn to C. Price0EGB452D₁S₁1QuantityRefer to Figure 3-8. The graph in this figure illustrates aninitial competitive equilibrium in the market for motorcyclesat the intersection of D2 and S1 (point C). If the price ofmotorcycle side cars (a complement to motorcycles)decreases, and the wages of motorcycle workers increase,how will the equilibrium point change?

Answer to the question is as follows:

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

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

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 55P: Table 3.9 illustrates the markets demand and supply for cheddar cheese. Graph the data and find the...

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Question

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

Price
0
E
G
B
4
52
D₁
S₁
1
Quantity
Refer to Figure 3-8. The graph in this figure illustrates an
initial competitive equilibrium in the market for motorcycles
at the intersection of D2 and S1 (point C). If the price of
motorcycle side cars (a complement to motorcycles)
decreases, and the wages of motorcycle workers increase,
how will the equilibrium point change?

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