Refer to the Graph Shown

question 20

Multiple Choice

Refer to the graph shown.A purchase of shekels by the Israeli government would shift the:

• A)demand curve to the left and reduce the price of shekels.
• B)demand curve to the right and raise the price of shekels.
• C)supply curve to the right and reduce the price of shekels.
• D)supply curve to the left and raise the price of shekels.

---

Definitions:

Single Price

A market condition where a good or service is sold at the same price to all customers, regardless of purchase quantity or location.

Nondiscriminating Monopolist

A monopolist that charges the same price to all customers, as opposed to engaging in price discrimination where different prices are charged to different customers.

Natural Monopoly

A market condition where due to high fixed or startup costs, a single firm can supply a good or service to an entire market at a lower cost than multiple companies.

Network Effects

Increases in the value of a product to each user, including existing users, as the total number of users rises.