-Consider the Figure Above Showing Supply Curves for Soft Drinks

question 178

Multiple Choice

-Consider the figure above showing supply curves for soft drinks. Suppose the economy is at point
A. A movement to point b could be the result of

• A) a decrease in the relative price of a soft drink.
• B) an increase in the money price of a soft drink.
• C) an increase in technology.
• D) an increase in the relative price of a soft drink.

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Definitions:

Unemployment

The situation when individuals who are capable of working and are actively seeking work are unable to find employment.

Equality

A state of being equal, especially in status, rights, and opportunities.

Positive Economics

The branch of economics that concerns itself with describing and explaining economic phenomena as they are, not as they should be.

Normative Economics

An area of economics that analyzes outcomes based on value judgments about what is desirable or what ought to be, rather than what merely is.