Refer to the Diagram

question 354

Multiple Choice

Refer to the diagram. If this is a competitive market, price and quantity will move toward

• A) $60 and 100, respectively.
• B) $60 and 200, respectively.
• C) $40 and 150, respectively.
• D) $20 and 150, respectively.

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Definitions:

Savings

Money that is set aside from one's income or earnings for future use, often accumulating interest.

Saving

The portion of income that is not spent on immediate consumption but is set aside for future use, often in investments or deposits.

Disposable Income

The available amount for households to spend and save, subsequent to income tax deductions.

Autonomous Consumption

The level of consumption that occurs when income is zero, representing the expenditures that consumers must make even when they have no income.