-In the Above Figure, If D₂ Is the Original Demand

question 298

Multiple Choice

-In the above figure, if D₂ is the original demand curve for a normal good and income decreases, which price and quantity might result?

• A) point a, with price P₂ and quantity Q₂
• B) point b, with price P₁ and quantity Q₁
• C) point c, with price P₃ and quantity Q₃
• D) point d, with price P₁ and quantity Q₃

---

Definitions:

Total Cash

The overall amount of liquid assets available to an individual or organization.

Price/demand Elasticity

A measure of how much the demand for a product changes in response to a change in its price.

Continuous Values

Numerical data that can take any value within a specified range, often associated with measurements.

Production Cost

The total expense incurred in the manufacturing of a product or providing a service, including raw materials, labor, and overhead costs.