Which of the Following Statements About Demand and Supply Accurately

question 35

Multiple Choice

Which of the following statements about demand and supply accurately describes the direction one of the curves will take if one variable is altered?

• A) The supply curve will shift to the left if taxes are decreased.
• B) The demand curve will shift to the left if buyers' incomes increase.
• C) The demand curve will shift to the right if the number of buyers decreases.
• D) The supply curve will shift to the left if the number of suppliers increases.

---

Definitions:

Favorable Supply Shock

An unexpected event that increases the availability of a good or service, thus lowering its price and benefiting consumers.

Inflation

The measure of how quickly the general pricing for products and services advances, decreasing monetary purchasing power.

Unemployment Rate

The ratio of individuals without employment, yet are actively pursuing job opportunities in the labor force.

Disinflation

A decrease in the rate of inflation, indicating a slowdown in the rate at which prices for goods and services increase over time.