An Increase in Demand

question 13

Multiple Choice

An increase in demand:

• A) results in a leftward shift of the demand curve.
• B) could be caused by a decrease in the price of the good.
• C) could be caused by an increase in the price of a substitute good.
• D) is shown as movement down along a demand curve.

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Definitions:

Poverty Line

A threshold set by governments or organizations to define the minimum income necessary to cover basic living costs, below which individuals are considered to be living in poverty.

Income Quintile

A statistical measure that divides a population into five equal groups according to their income levels, used to analyze income distribution.

Highest Quintile

Refers to the top 20% of the population sorted by income or wealth, indicating those with the highest levels of each.

Welfare Reform Act

Legislation aimed at changing the welfare system by encouraging work, limiting the duration of benefits, and supporting families.