Question

Refer to Figure 3-2. A decrease in the price of inputs would be represented by a...

Refer to Figure 3-2. A decrease in the price of inputs would be represented by a movement from

Figure 3-2

Title: Figure 3-2 - Description: Figure 3-2 shows supply curves. The supply curve shifts from S1 to S2. There is also point A to point B on S1.

Question 2 options:

A)

A to B.

B)

B to A.

C)

S1 to S2.

D)

S2 to S1.

0 0
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Answer #1

Ans. 2. C) S1 to S2

When the price of inputs decreases, given the price of the good, more units of the goods will produce and supply of the good increases that lead to the shift in the supply curve to the right from supply curve, S1 to supply curve, S2.

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