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(Solved): Xavier is skilled at making both necklaces and earrings. Xavier has no preference between making nec ...



Xavier is skilled at making both necklaces and earrings. Xavier has no preference between making necklaces or earrings since he earns the same amount from the two activities. If the selling price of earrings increases from $20 to $40, then Xavier's opportunity cost of making necklaces and making necklaces is now profitable than making earrings. Suppose that the necklaces market consists of several suppliers like Xavier who are skilled at making both necklaces and earrings. Which of the following is likely to happen to the supply curve of necklaces when the price of a earrings increases? It shifts to the left It does not change It shifts to the right



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