Figure 14.1 -Refer to Figure 14.1. a Movement from Point a to a to Point

question 87

Multiple Choice

Figure 14.1
-Refer to Figure 14.1. A movement from Point A to Point B can be caused by:

• A) an increase in the price of bonds.
• B) an increase in the price level.
• C) a decrease in the interest rate.
• D) a decrease in income.

---

Definitions:

Elastic Demand

A situation in which the quantity demanded of a good or service significantly changes in response to a change in price.

Tax Revenue

The income that is gained by governments through taxation, which is then used to fund public services and goods.

Price Elastic

Refers to the sensitivity of the demand for a good or service to changes in its price; highly elastic demand means consumers will significantly alter their purchase amount with price changes.

Consumption

The use of goods and services by households. It is a primary component of an economy's demand side.