Refer to the Information Provided in Figure 3

question 191

Multiple Choice

Refer to the information provided in Figure 3.18 below to answer the question(s) that follow. Figure 3.18
-Refer to Figure 3.18 The market is initially in equilibrium at Point B. If demand shifts from D₂ to D₁, the equilibrium price will change from ________ and the equilibrium quantity will change from ________.

• A) $4.00 to $3.00; 250 to 350
• B) $4.00 to $3.00; 350 to 250
• C) $3.00 to $4.00; 250 to 350
• D) $3.00 to $4.00; 350 to 250

---

Definitions:

Resource Dilemmas

Situations in which individuals or groups face decisions about how to share, distribute, or use limited resources.

Tragedy of the Commons

A situation in which individuals acting independently and rationally according to their own self-interest behave contrary to the best interests of the whole group by depleting or spoiling shared resources.

Pollutants

Substances that cause pollution, having harmful effects on the environment and living organisms.

Cost-Benefit Analysis

A systematic process of comparing the costs and benefits of a decision, project, or action to determine its feasibility or profitability.