-Consider the Demand Curves for Soft Drinks Shown in the Figure

question 184

Multiple Choice

-Consider the demand curves for soft drinks shown in the figure above. Moving from point a to point c means that

• A) the marginal benefit of each additional soft drink falls.
• B) the opportunity cost of another soft drink increases.
• C) the price of a soft drink has increased.
• D) peopleʹs incomes have decreased.

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Definitions:

Decimal Place

A position of a number to the right of the decimal point, indicating fractions of a base unit.

Percentages

A mathematical concept that represents a number or ratio as a fraction of 100.

Horizontal Analysis

A method of financial analysis in which figures in financial statements are compared across several periods to identify trends or changes over time.

Dollar Changes

Refers to the difference in value or cost in U.S. dollars of an item, investment, or project over time.