Refer to Figure 8.3. Holding other variables constant, if the economy is originally in equilibrium at the intersection of D1 and S1 and firms experience an increase in technology of production, the economy would move to the new equilibrium point

represented by A) w1 and L2.
B) w3 and L2.
C) w2 and L2.
D) w2 and L3.


B

Economics

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To understand how the price of a good is determined in a free market, one must account for the desires of:

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What will be an ideal response?

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