Exhibit 3-2 Demand Curves

question 76

Multiple Choice

Exhibit 3-2 Demand curves
​
-In Exhibit 3-2, the shift in the demand curve from D₁ to D₂ could have been caused by which of the following?

• A) Decrease in price.
• B) Increase in expected future prices.
• C) Increase in the price of a complement.
• D) Decrease in income if it is a normal good.

---

Definitions:

Operating Divisions

Distinct units within a company, often based on products or markets, responsible for their own performance and strategy.

Variable Costs

Expenses that vary in direct proportion to changes in the level of an organization's activity or volume of output.

Fixed Costs

Expenses that do not change with the level of production or sales volume, such as rent, salaries, and insurance premiums.

Peak-period

A time of maximum activity or demand, often leading to higher prices and increased revenue for companies able to meet the demand.