Use the Figure Below to Answer the Following Questions

question 35

Multiple Choice

Use the figure below to answer the following questions.

Figure 3.2.2
-Refer to Figure 3.2.2. If consumers' income increases,

• A)the quantity of pizzas demanded increases.
• B)the demand curve for pizzas shifts from D₁ to D₂ if a pizza is a normal good.
• C)the supply of pizzas increases.
• D)the quantity of pizzas supplied decreases.
• E)a movement from point A to point B on D₁ occurs.

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Definitions:

Pure Competition

A market structure characterized by an extremely large number of sellers and buyers where no single participant has the market power to influence product prices.

Oligopoly

A market structure characterized by a small number of firms controlling a large portion of the market share, often leading to limited competition.

Monopolistic Competition

A market structure characterized by many firms offering products that are similar but not identical, leading to competition based on quality, price, and marketing.