1. At what quantity in the preceding figure is the maximum buying price equal to the minimum selling price?
2. In the following figure, can the movement from point 1 to point 2 be explained by a combination of an increase in the price of a substitute and a decrease in the price of nonlabor resources? Explain your answer.
![1424_image06122015036.jpg](https://secure.tutorsglobe.com/CMSImages/1424_image06122015036.jpg)