In Year 1 the Price of Good X Is $10

question 82

Multiple Choice

In year 1 the price of good X is $10 and 100 units are bought and sold. In year 2 the price of good X is $13 and 230 units are bought and sold. What of the following could explain this?

• A)The supply of good X was higher in year 2 than in year 1 and the demand for good X was the same in year 2 as in year 1.
• B)The demand for good X was higher in year 2 than in year 1 and the supply of good X was the same in year 2 as in year 1.
• C)Both the demand for, and supply of, good X were lower in year 2 than in year 1.
• D)The demand for X was lower in year 2 than in year 1 and the supply of good X was the same in year 2 as in year 1.

---

Definitions:

Marginal Workers

Individuals who are employed in a job that does not fully utilize their skills or capabilities, often due to economic fluctuations or lack of available positions.

Real Wages

Wages adjusted for inflation, representing the true purchasing power of income earned from labor.

Productivity

A measure of the efficiency of production, often evaluated as the ratio of output to input in the production process.

Income Effect

The change in individuals' consumption patterns due to an increase or decrease in their income, affecting their purchasing power.