(Figure: Demand Shift I) Which of the Following Events Could

question 97

Multiple Choice

(Figure: Demand Shift I) Which of the following events could have caused the demand curve to shift? I. The price of a substitute good decreased.
II) The price of a complement good increased.
III) The income of consumers increased.
IV) The number of buyers in the market increased.

• A) I, II, III, and IV
• B) III and IV
• C) II, III, and IV
• D) I and II

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Definitions:

Fixed Capital Input

Assets and resources used in production that are not consumed or changed and can be used repeatedly over time, such as machinery and buildings.

Variable Labor Input

Labor whose usage level can be changed in the short term to match the level of output production.

Lowest Cost Level

The point at which a business can produce its goods or services at the minimum possible cost.

Average Total

The sum of all the costs of production (fixed and variable) divided by the total quantity produced; often referred to as average total cost.