Exhibit 1A-3 Straight Line Straight Line AB in Exhibit

question 6

Multiple Choice

Exhibit 1A-3 Straight line Straight line AB in Exhibit 1A-3 shows that:

• A)increasing values for X reduces the value of Y.
• B)decreasing values for X increases the value of Y.
• C)there is an inverse relationship between X and Y.
• D)all of these.

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Definitions:

Economic Inefficiency

A situation in which resources are not used in the most productive way, leading to losses or waste and the potential for improved outcomes.

Equilibrium

A state of balance in a market system where supply equals demand, and there is no tendency for change.

Economic Profits

The difference between total revenues and total costs, including both explicit and implicit costs, reflecting the excess return over the firm's opportunity costs.

Demand Curve

A graph showing how the quantity demanded of a good or service varies with its price.