Four supply and demand graphs show shifts in the supply and demand curves. All four graphs have P (price) on the vertical axis and Q (quantity) on the horizontal axis. In Graph A, D 1 shifts right to D 2 along a stable supply curve S. In Graph B, D 1 shifts left to D 2 along a stable supply curve S. In Graph C, S 1 shifts right to S 2 along a stable demand curve D. In Graph D, S 1 shifts left to S 2 along a stable demand curve D.

Which of the diagrams illustrates the effect of an increase in automobile worker wages on the market for automobiles?

Multiple Choice

• D only

• B only

• C only

• A only

Transcribed Image Text:

P 0 P (A) (C) S ·D2 -D₁ S₁ S2 0 P (B) (D) S -Dr D₂ S2 S₁ PQ P 0 P (A) (C) S ·D2 -D₁ S₁ S2 0 P (B) (D) S -Dr D₂ S2 S₁ PQ

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Ans D only Explanati... View the full answer