A Decrease in the Price of Bubble Gum Below Equilibrium

question 11

Multiple Choice

A decrease in the price of bubble gum below equilibrium will

• A)Shift the bubble gum supply curve to the right.
• B)Shift the bubble gum demand curve to the right.
• C)Cause a surplus of bubble gum.
• D)Cause a shortage of bubble gum.

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Definitions:

Standard Of Living

A measure of the wealth, comfort, material goods, and necessities available to a certain socioeconomic class or a geographic area.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs and technology, illustrating the trade-offs and efficiency in production.

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts and/or the tangible machinery and production equipment used in environments such as plants and factories.

Institutional Constraints

Regulations, norms, or laws imposed by institutions that limit or guide the behavior of individuals, groups, or firms within a society or economy.