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Hey Guys! I was given this question this ACCA FBT Mock Test #2 by friend but I was unable to get the diagram to answer this question because it was expired, Can someone who has the diagram can you please share it with me
Background
The following diagrams represent changes in supply and demand conditions.
Diagram A Diagram BDiagram C Diagram D
The arrows represent shifts in the supply or demand schedules.
Indicate which diagram represents the following.
An increase in the prices of substitute goods
A reduction in incomes of purchasers of the
Good.The introduction of a new, more efficient
production process.An increase in the costs of factors of
Production.An increase in the prices of substitute goods – This would result in a shift in the demand curve for the good in question. The shift would be to the right, indicating an increase in demand. Based on the descriptions provided, it’s unclear which diagram would represent this shift.
A reduction in incomes of purchasers of the Good – This would result in a shift in the demand curve for the good in question. The shift would be to the left, indicating a decrease in demand. Based on the descriptions provided, it’s unclear which diagram would represent this shift.
The introduction of a new, more efficient production process – This would result in a shift in the supply curve for the good in question. The shift would be to the right, indicating an increase in supply. Diagram C could potentially represent this shift.
An increase in the costs of factors of Production – This would result in a shift in the supply curve for the good in question. The shift would be to the left, indicating a decrease in supply. Based on the descriptions provided, it’s unclear which diagram would represent this shift.
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