Exhibit 4-2 -Refer to Exhibit 4-2. If the Supply Curve Shifts to Curve

question 60

Multiple Choice

Exhibit 4-2
-Refer to Exhibit 4-2. If the supply curve shifts to the right, then which of the following is true?

• A)D₁ results in the most decrease in the equilibrium price.
• B)D₁ results in the most increase in the equilibrium price.
• C)D₂ results in the most decrease in the equilibrium price.
• D)D₂ results in the most increase in the equilibrium price.
• E)The change in the equilibrium price is the same for D₁ and D_2.

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Definitions:

State-Supported Company

A business that receives financial aid, subsidies, or other forms of support from the government.

Government Grant

Financial support provided by the government to individuals, organizations, or businesses for specific projects or purposes, often not requiring repayment.

Indirect Benefits

Advantages or positive effects that are not directly linked to the initial action or investment, often realized over time or through secondary channels.

Job Creation

The process of providing new employment opportunities, often seen as a critical aspect of economic growth and development.