Refer to the Above Diagram, in Which S₁ and D₁

question 168

Multiple Choice

Refer to the above diagram, in which S₁ and D₁ represent the original supply and demand curves and S₂ and D₂ the new curves.In this market the indicated shift in supply may have been caused by:

• A)an increase in the wages paid to workers producing this good.
• B)the development of more efficient machinery for producing this commodity.
• C)this product becoming less fashionable.
• D)an increase in consumer incomes.

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Definitions:

Legal Entity

An organization or individual with legal rights and obligations, like a corporation or partnership.

Personal Guarantee

A guarantee of payment for another’s obligation.

Closely Held

A closely held company is one whose shares are held by a small group of individuals or entities, often involving family ownership or a small group of investors.

Major Shareholders

Individuals or entities that own a significant proportion of a company's shares, giving them substantial influence.