The Graph Illustrates the Supply of Sweaters

question 120

Multiple Choice

The graph illustrates the supply of sweaters. Which of the following events will increase the supply of sweaters?

• A) A rise in the wage rate paid to the workers who make sweaters.
• B) A rise in the expected future price of a sweater.
• C) An increase in income if sweaters are a normal good.
• D) An increase in the number of sellers of sweaters.
• E) A rise in the price of a sweater.

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Definitions:

Company Name

The legally registered title under which a corporation operates its business.

Direct Cross-Subsidies

A financial practice where the revenue from one product or service directly supports another within the same company, often to maintain competitive pricing or support strategic objectives.

Above Market Rates

Compensation or prices that exceed the average or expected standard within a specific industry or market.

Free Meal

A meal provided without charge, often as a form of aid, hospitality, or marketing strategy.