The Table Below Displays Hypothetical Demand and Supply Schedules for the Market

question 109

Multiple Choice

The table below displays hypothetical demand and supply schedules for the market for overnight parcel deliveries in Canada. TABLE 3-4 Refer to Table 3-4.Which of the following statements best describes the change in equilibrium price and quantity in this market between Year 1 and Year 2?

• A)The demand curve has shifted to the left,the supply curve has shifted to the right; as a result equilibrium price is lower and equilibrium quantity is higher.
• B)The demand curve has shifted to the left,the supply curve has shifted to the left; as a result equilibrium price is higher and equilibrium quantity is lower.
• C)The demand curve has shifted to the right,the supply curve has shifted to the left; as a result equilibrium price is higher and equilibrium quantity is lower.
• D)The demand curve has shifted to the left,the supply curve has shifted to the right; as a result equilibrium price is higher and equilibrium quantity is lower.
• E)There is no change in equilibrium price or quantity from Year 1 to Year 2.

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Definitions:

Negative Reinforcement

A behavioral principle where the removal of an unpleasant stimulus strengthens a behavior or increases the likelihood of its repetition.

Unpleasant Stimulus

A negative or harmful stimulus that causes discomfort or aversion, often used in psychology to study learning, memory, and behavior conditioning.

Desired Behavior

A specific pattern of action that an individual or group aims to achieve or exhibit.

Nature

The processes within an organism that guide that organism to develop according to its genetic code.