Refer to the Above Diagram, Which Applies to a Private

question 4

Multiple Choice

Refer to the above diagram, which applies to a private closed economy.If the initial gross investment I_g1 increases to I_g2, the equilibrium GDP will increase by:

• A)FE.
• B)AB.
• C)AD.
• D)GE.

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Definitions:

Price Discrimination

A pricing strategy where a company charges different prices for the same product or service to different customers, based on the willingness to pay.

Different Prices

The phenomenon where goods or services are sold at varying prices due to factors such as location, demand, or quality.

Pure Monopolist

A single supplier dominates the entire market for a particular good or service, without any competition.

Marginal Cost

The cost added by producing one additional unit of a product.