Suppose an Economy's Consumption Schedule Shifts from C1 to C2

question 102

Multiple Choice

Suppose an economy's consumption schedule shifts from C1 to C2, as shown in the diagram. We can say that its

• A) MPC has increased, but its APC at each income level is unchanged.
• B) APC at each income level is increased, but its MPC is unchanged.
• C) MPC and APC at each income level have both increased.
• D) MPC and APC at each income level have both decreased.

---

Definitions:

Monopoly

A market structure characterized by a single seller who has exclusive control over a product or service.

Antitrust Law

Legal regulations designed to promote fair competition for the benefit of consumers, by preventing monopolies, cartels, and other practices that restrain free trade.

Interstate Commerce

Trade, traffic, or transportation involving the movement of goods or people across state lines, regulated by federal law.

Professional Baseball

A sport involving organized teams and leagues, recognized at a professional level for its athletes who are paid to play.