Figure 4.5.1 -Refer to Figure 4.5.1 Above. When Demand Increases from #1

question 54

Multiple Choice

Figure 4.5.1
-Refer to Figure 4.5.1 above. When demand increases from #1 to D2,

• A) the pure price effect moves the market from A to B, and the externality effect from B to C.
• B) the pure price effect moves the market from B to C, and the externality effect from A to B.
• C) the pure price effect moves the market from A to C, and the externality effect from C to B.
• D) the pure price effect moves the market from A to B, and the externality prevents the move from B to C.

---

Definitions:

DVCs

This abbreviation can stand for "Dynamic Voltage and Frequency Scaling," an energy-saving technique in computing, but in economic terms, NO.

Infrastructure

The interconnected network of large-scale capital goods (such as roads, sewers, electrical grids, railways, ports, and the Internet) needed to operate a technologically advanced economy.

Entrepreneurial Class

A segment of society that is involved in or has the capacity to undertake new business ventures and innovate, often leading to job creation and economic development.

Capital Investment

Funds invested in a business with the intent of enhancing its capacity or operations, often involving expenditures on equipment or infrastructure.