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 о Pricel C B Price 51 D₂ D Quantity 0 D Price 0 D D₁ Quantify a) A b) B c) C d) D D₂ D Quantity D Quantity

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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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
о
Pricel
C
B
Price
51
D₂ D
Quantity
0
D
Price
0
D D₁
Quantify
a) A
b) B
c) C
d) D
D₂
D
Quantity
D
Quantity
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 о Pricel C B Price 51 D₂ D Quantity 0 D Price 0 D D₁ Quantify a) A b) B c) C d) D D₂ D Quantity D Quantity
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