Refer to the Below Supply and Demand Graph

question 23

Multiple Choice

Refer to the below supply and demand graph.Point A represents the current equilibrium level of output of this product and point B represents the optimal level of output from society's perspective.If government decides to correct this externality with a subsidy to consumers, then the:

• A)demand curve will shift from D₂ to D₁.
• B)supply curve will shift from S₁ to S₂.
• C)demand curve will shift from D₁ to D₂.
• D)supply curve will shift from S₂ to S₁.

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Definitions:

Psychodynamic Theories

Theories proposing that behavior is the result of internal psychological forces that often stem from childhood experiences.

Dynamic Interaction

The continuous and changing interplay between individuals or elements in a system or process.

Mental Processes

The internal, subjective mechanisms and activities through which individuals perceive, remember, think, and feel.

Psychodynamic Theories

A group of theories in psychology that primarily focus on unconscious processes and childhood experiences affecting personality and behavior.