Figure 4-3 -Refer to Figure 4-3. the Shift from D_b to D_a

question 215

Multiple Choice

Figure 4-3
-Refer to Figure 4-3. The shift from D_b to D_a in the market for potato chips could be caused by

• A)a decrease in the price of potato chips.
• B)a decrease in income, assuming that potato chips are a normal good.
• C)an announcement by the FDA that potato chips lower the risk of getting cancer.
• D)an increase in the price of a popcorn.

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Definitions:

Real Median Household Income

The midpoint of household income distribution after adjusting for inflation, which represents the purchasing power of a typical household.

Squeeze

A financial or economic situation where resources such as money are limited, leading to pressure on individuals or families.

Americans

Citizens of or people living in the United States of America.

Work

A physical or mental activity that accomplishes or produces something, either goods or services.