Refer to the Four Graphs Above

question 203

Multiple Choice

Refer to the four graphs above. Select the graph that best shows the changes in demand and supply in the market specified in the following situation: the market for music CDs sold in stores, if
More consumers switch to music-downloads from the Internet and the cost of making music CDs
Decreases because of technological improvement in production.

• A) Graph A
• B) Graph B
• C) Graph C
• D) Graph D

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Definitions:

Lower Two Quintiles

Refers to the bottom 40% of a population when it is divided into five equal groups according to income levels.

Income Earned

The total amount of money received by an individual or a business in exchange for labor or the provision of services during a certain period.

Black Children

A term referring to children of African or African American descent.

Under 18

Refers to individuals who have not yet reached the legal age of adulthood, which is often defined as 18 years in many jurisdictions.