The Initial Supply and Demand Curves for a Good Are

question 110

Multiple Choice

The initial supply and demand curves for a good are illustrated in the above figure. If there are technological advances in the production of the good, then the new equilibrium price for the good

• A) is less than $6.
• B) is $6.
• C) is more than $6.
• D) could be less than, equal to, or more than $6.

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Definitions:

Neoliberal Economic Theories

A set of economic policies that emphasize free-market capitalism, deregulation, and a reduction in government spending.

Minimal Welfare

A social welfare system that provides only the most basic level of support to individuals who are unable to support themselves.

Neoliberal State

A type of government that strongly favors free-market capitalism, minimal government intervention in the economy, and reduction in social spending.

Authoritarianism

A political system characterized by a concentration of power in a leader or an elite not constitutionally responsible to the populace.