In the diagrams below, D2 shows how the demand curve has shifted from D1. S2 shows how the supply has shifted from S1. Which diagram in Figure 6.1 best represents how demand and supply for a normal product would shift if the costs of production rise and incomes fall? Price B Price 51 A D D ° Quantity Price D D Price D₂ D Quantity D₂ D D D O Quantify O Quantity a) A b) B c) C d) D

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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In the diagrams below, D2 shows how the demand curve has shifted from D1. S2 shows how the supply has
shifted from S1. Which diagram in Figure 6.1 best represents how demand and supply for a normal product
would shift if the costs of production rise and incomes fall?
Price
B
Price
51
A
D
D
°
Quantity
Price
D
D
Price
D₂
D
Quantity
D₂
D
D
D
O
Quantify
O
Quantity
a) A
b) B
c) C
d) D
Transcribed Image Text:In the diagrams below, D2 shows how the demand curve has shifted from D1. S2 shows how the supply has shifted from S1. Which diagram in Figure 6.1 best represents how demand and supply for a normal product would shift if the costs of production rise and incomes fall? Price B Price 51 A D D ° Quantity Price D D Price D₂ D Quantity D₂ D D D O Quantify O Quantity a) A b) B c) C d) D
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