Figure 3-7 -In Figure 3-7,suppose D₁ and S₁ Indicate the Initial Conditions

question 14

Multiple Choice

Figure 3-7

-In Figure 3-7,suppose D₁ and S₁ indicate the initial conditions in the market for ice cream.Which of the following changes would tend to cause the shift from D₁ to D₂ in the market for ice cream?

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

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Definitions:

Dutch Economy

Refers to the economic system and practices of the Netherlands, characterized by its highly mechanized agricultural sector, significant international trade, and advanced industrial base.

Trading Partner

A country or entity with which another country engages in the exchange of goods and services.

European Monetary Union

An agreement among European Union member countries to use a single currency, the euro, and to coordinate their monetary policies.

Highly Productive Economies

Economies that are able to produce a significant amount of goods and services per unit of input.