Use the Following to Answer Question(s): Demand and Supply-Determinants

question 87

Multiple Choice

Use the following to answer question(s) : Demand and Supply-Determinants

-(Exhibit: Demand and Supply-Determinants) The exhibit shows how supply and demand might shift in response to specific events.Suppose consumer incomes decrease.Which panel best describes how this will affect the market for used clothing, an inferior good?

• A) Panel (a)
• B) Panel (b)
• C) Panel (c)
• D) Panel (d)

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Definitions:

Linear Equation

A linear equation is an algebraic equation in which each term is either a constant or the product of a constant and a single variable, and the graph forms a straight line.

Solve

The process of finding the values that satisfy an equation or a system of equations.

Proportion

A statement that two ratios or fractions are equal.