Figure 3.8 -Refer to Figure 3.8.The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D₁ and S₂ (point B). Which of the following changes would cause the equilibrium to change to point C? A)A positive change in the technology used to produce apples and a decrease in the price of oranges, a substitute for apples B)An increase in the wages of apple workers and an increase in the price of oranges, a substitute for apples C)An increase in the number of apple producers and a decrease in the number of apple trees as a result of disease D)A decrease in the wages of apple workers and an increase in the price of oranges, a substitute for apples

Question

Quizplus · Accepted Answer

A positive change in technology will shift the supply curve to the right, leading to a new equilibrium point where the supply curve intersects the original demand curve at point C. Additionally, a decrease in the price of oranges, a substitute for apples, will increase the demand for apples, shifting the demand curve to the right and resulting in a new equilibrium at point C.

Figure 3.8 -Refer to Figure 3.8.The Graph in This Figure Illustrates an Figure