Assume the Market in the Graph Shown Was Originally at Equilibrium

question 70

Multiple Choice

Assume the market in the graph shown was originally at equilibrium where demand (D) and supply (S) intersect. However, something causes the demand to shift to D₂. What could have caused such a shift?

• A) The good became more popular with consumers.
• B) Consumers expected the price of the good to drop in the near future.
• C) The good became cheaper to produce.
• D) Substitutes for this good became less expensive.

---

Definitions:

Risk of Loss

Refers to the possibility of an asset's value decreasing due to changes in market conditions or other unforeseen circumstances.

Sales Contract

A legal agreement between a buyer and seller outlining the terms of a sale of goods or services.

Insure

To provide or obtain insurance coverage against risk or loss.

Rights

Entitlements or freedoms granted to individuals or groups by law, social convention, or moral principles.