Figure 3-6 in Figure 3-6, Suppose D₁ and S₁

question 142

Multiple Choice

Figure 3-6 In Figure 3-6, suppose D₁ and S₁ indicate initial conditions in the market for ice cream. Which of the following changes would tend to cause a shift from S₁ to S₂ in the market for ice cream?

• A) an increase in the price of sugar, an ingredient used to produce ice cream
• B) a decrease in the price of frozen yogurt, a substitute for ice cream
• C) abnormally hot weather that temporarily increases consumer desire for ice cream
• D) a decrease in the price of milk, an ingredient used to produce ice cream

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Definitions:

Extension

In general terms, it refers to the act of increasing the length or duration of something or expanding its scope or coverage.

Expansion

The act or process of increasing in size, volume, quantity, or scope.

Cognitive Flexibility

The mental ability to switch between thinking about two different concepts, or to think about multiple concepts simultaneously.