-(Exhibit: Markets and Efficiency) in Panel (B) Demand Shifted from D₁

question 16

Multiple Choice

-(Exhibit: Markets and Efficiency) In Panel (b) demand shifted from D₁ to D₂ reflecting a change in consumer preferences. Based upon that, which of the following statements is true?

• A) At the price of $.80, the quantity of apples demanded will now be greater than the quantity supplied.
• B) At the price of $.80, the quantity supplied of apples will now equal the quantity demanded.
• C) There is pressure for the price of apples to fall to $0.70 per pound.
• D) A shortage of apples will force the price up to the new price of $0.90.

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Definitions:

Government Intervention

The involvement by government in the market, often to correct market failures or achieve a social goal.

Unemployment Rate

The proportion of the workforce that is unemployed and actively seeking work.

Labor Force

The total number of people, including both the employed and unemployed, who are actively seeking employment.

Adult Population

The segment of the population that is considered adult, typically based on a specific age range, often used in demographics and employment statistics.