Answered: What happens in the graph when the…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 2SCQ: Continuing from Exercise 7.1, the films factory sits on land owned by the firm that it could rent...

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What happens in the graph when the price of bottled water rises? What happens when the price of flavored water( a subsistute in production for bottled water) rises? When the price of bottled water rises, _____. When the price of flavored water rises, ____.? A. There is a movement along the supply curve; the supply curve shifts rightward. B. The supply curve shifts leftward; there is a movement down along the supply curve. C. The supply curve shifts rightward; there is a movement up along the supply curve. D. there is a movement up along the supply curve; the supply curve shifts leftward.

D
A fall in the price of a
substitute in production,
Price (dollars per bottle)
2.50
2.00
1.50
1.00
0.50
0
7
8
Ș₁
Decrease
in supply
59
9 10 11 12 13
Quantity (millions of bottles per day)

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