A Critical Assumption in the Model of Demand and Supply

question 6

Multiple Choice

A critical assumption in the model of demand and supply is the independence of demand and supply curves. If the two are not independent, a shift in the supply curve can lead to a shift in the demand curve referred to as

• A) supply-side economics.
• B) supplier-induced demand.
• C) supply shocks.
• D) ceteris paribus.
• E) the fallacy of supply.

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