Please see picture Price of Good x Quantity of Good X Refer to Exhibit 3-7. If...

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Question

Please see picture

Price of Good x Quantity of Good X Refer to Exhibit 3-7. If S1 is the relevant supply curve, a decrease in the price of a res

Answer 1

Answer #1

Option B.

Given that S1 is the supply curve and when the price of any resource used in the production of a good X decreases, then more units of a good X will be produced.
This will eventually lead to an increase in the supply of the good X.
This will shift the supply curve of good X to shift from S1 to S3.

Answer 2

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