Refer to the graph below, which shows the market for bicycles. S1 and D1 are the original supply and demand curves. D2 and D3 and S2 and S3 are possible new demand and supply curves. Starting from the initial equilibrium (point 1), what point on the
graph is most likely to be the new equilibrium after a sharp increase in traffic accidents involving cyclists, and the payment of subsidies to bicycle producers?
A. 3
B. 4
C. 5
D. 6
D. 6
Economics
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Which of the following is NOT a component of value added of a firm?
A) profits B) wages C) interest D) expenditures on intermediate goods
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If crowding out occurs, the Main Burden of the debt is
a. smaller government assets passed along to the next generation. b. smaller capital stock passed along to the next generation. c. fewer government services during this generation. d. higher debt payments passed along to the next generation.
Economics