Figure 2.8 -In Figure 2.8, Which of the Following Is True

question 22

Multiple Choice

Figure 2.8

-In Figure 2.8, which of the following is true?

• A) The change in demand could have resulted from a decrease in income if this is a normal good.
• B) The change in supply could have resulted from a decrease in resource costs.
• C) The new equilibrium occurs at a higher price than the original equilibrium.
• D) The change in demand could have resulted from a decrease in price.
• E) All of these

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Definitions:

Widgets

A generic term for any hypothetical manufactured good used in economics or consumer studies.

Consumers

Individuals or entities that purchase goods or services for personal use and not for manufacturing or resale.

Widgets

A hypothetical or generic product often used in economic examples and problems to represent any type of good or service.

Externalities

Costs or benefits arising from an economic activity that affect bystanders and are not reflected in market prices.