Suppose Z Is a Normal Good

question 177

Multiple Choice

Suppose Z is a normal good.The equilibrium price and equilibrium quantity of Z in the year 2013 was $25 and 60 units,respectively.In 2017,the equilibrium price of Z had decreased to $15 and the equilibrium quantity had also decreased to 50 units.Other things remaining the same,which of the following could explain this change?

• A) A leftward shift of the supply curve of Z
• B) A rightward shift of the supply curve of Z
• C) A leftward shift of the demand curve for Z
• D) A rightward shift of the demand curve for Z

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Definitions:

Market 2

A term that might refer to a secondary or alternative market for goods, services, or securities distinct from the primary or original market.

Discriminating Monopolist

A monopolist that charges different prices to different consumers or in different markets for the same product, based on the willingness to pay.

Different Prices

Refers to the variability in the cost of goods and services across different markets, locations, or time periods due to various factors such as demand, supply, and inflation.

Maximize Profits

The process of adjusting the production level, pricing, or other variables to achieve the highest possible financial gain.