Use the Figure Below to Answer the Following Question(s)

question 12

Multiple Choice

Use the figure below to answer the following question(s) . Figure 3-8
In Figure 3-8, if the initial demand and supply for soybeans were D₁ and S₁, how would a decrease in the cost of producing soybeans affect the market for soybeans?

• A) Demand would increase to D₂, price would increase to P₂, and the quantity would increase to S.
• B) Supply would increase to S₂, price would decrease to P₀, and the quantity would increase to S.
• C) Both demand and supply would increase so the price would remain at P₁, but the quantity would increase to T.
• D) None of the above would occur.

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Definitions:

Oil Change

The process of removing old engine oil and replacing it with new oil to maintain engine lubrication and performance.

Chemically Pure Urea

A synthetic compound used primarily in fertilizers, plastics, and pharmaceuticals, characterized by its high nitrogen content.

Deionized Water

Water that has had its mineral ions removed, such as sodium, calcium, iron, and copper, making it a high purity water often used in laboratories and electronics manufacturing.

NOx Emissions

Nitrogen oxides emissions, which are harmful pollutants produced by combustion engines, contributing to air pollution and respiratory problems.