Refer to the graph. Other things equal, a decrease in the price of a substitute resource would cause a
A)move from a to b on D₁.
B)shift from D₂ to D₃, assuming the output effect exceeds the substitution effect.
C)shift from D₃ to D₂, assuming the output effect exceeds the substitution effect.
D)move from b to a on D₁.

Question

Refer to the graph. Other things equal, a decrease in the price of a substitute resource would cause a
A)move from a to b on D₁. 
B)shift from D₂ to D₃, assuming the output effect exceeds the substitution effect. 
C)shift from D₃ to D₂, assuming the output effect exceeds the substitution effect. 
D)move from b to a on D₁.

Quizplus · Accepted Answer

The Answer of  Refer to the graph. Other things equal, a decrease in the price of a substitute resource would cause a
A)move from a to b on D₁. 
B)shift from D₂ to D₃, assuming the output effect exceeds the substitution effect. 
C)shift from D₃ to D₂, assuming the output effect exceeds the substitution effect. 
D)move from b to a on D₁.

Refer to the Graph