The Initial Supply and Demand Curves for a Good Are

question 79

Multiple Choice

The initial supply and demand curves for a good are illustrated in the above figure. If there is a rise in the price of a factor of production used to produce the good, then the new equilibrium price

• A) is $6.
• B) is more than $6.
• C) is less than $6.
• D) could be less than, equal to, or more than $6.

---

Definitions:

Reparations Payments

Financial compensation given to individuals or communities as amends for injustices or wrongs done to them.

German Reparations

Compensation payments made by Germany primarily to the Allies, as required by the Treaty of Versailles after World War I.

Fourteen Points

A statement of principles for peace that was to be used for peace negotiations in order to end World War I, proposed by U.S. President Woodrow Wilson in 1918.

General Strike

A general strike is a widespread cessation of work by workers in multiple industries and sectors, typically orchestrated by labor unions or worker collectives, aimed at achieving specific economic or political objectives.