-In the Above Figure, If the Demand Curve Is D₂

question 417

Multiple Choice

-In the above figure, if the demand curve is D₂, then

• A) there will be a shortage equal to Q₂ - Q₁.
• B) an increase in price will shift the demand curve to D₃.
• C) the equilibrium price will be P₁ and the equilibrium quantity will be Q₂.
• D) the equilibrium price will be P₁ and the equilibrium quantity will be Q₁.

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Definitions:

Systematic Desensitization

A behavioral therapy technique used to gradually reduce anxiety through the use of relaxation techniques and exposure to feared stimuli.

Psychotherapy

The management of mental illness through psychological methods instead of medical treatments.

M'Naghten Rule

A legal standard used to determine whether a defendant was sane at the time of committing a crime, focusing on their ability to understand right from wrong.

Insanity

A legal term for a mental disorder so severe that it prevents a person from understanding the difference between right and wrong or from being able to control their actions.