Question Completion Status S2 S1 8 Do Quantity of Wool Refer

Question Completion Status S2 S1 8 Do Quantity of Wool Refer to the above figure. The movement from to is consistent with a successful advertising campaign that claims wool keeps you warm O Point A; Point B O Point A; Point F Point A; Point D Point A; Point H QUEST?ON21 Click Save and Submit to save and submit. Click Save All Ansuwers to save all ansvers

Solution

20)

A successful advertising campaign would increase demand for wool and cost of production as well as advertising cost would be incurred. so the movement of the demand curve would be from point A to point F.

the correct option is (b)

22)

When initial demand and supply curves are D1 and S1 then equilibrium price is when D1=S1 at $6 price. When demand changes to D2 then the equilibrium would now be D2=S1 implies price will change to $8.

the correct option is (d)