Which of the Following Explains Why the U

question 9

Multiple Choice

Which of the following explains why the U.S.poverty threshold increased from $3,000 per year in 1963 to $22,000 per year in 2009?

• A)Americans are more spoiled now than they were in 1963.
• B)The threshold includes more luxury items now than it did in 1963.
• C)Inflation has caused the price for basic necessities to increase since 1963.
• D)The government has become more benevolent than it was in 1963.

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers over a range of prices.

Equilibrium Price

The cost where the amount of products offered matches the amount of products sought by consumers.

Equilibrium Quantity

The quantity of goods or services supplied is equal to the quantity of goods or services demanded at the market equilibrium price.

Supply Curve

A graphical representation showing the relationship between the quantity of goods that producers are willing to sell and the price levels of those goods.