Refer to the Accompanying Figure

question 46

Multiple Choice

Refer to the accompanying figure. If the price is $4 today and there is no change in either supply or demand, one would expect the price in the future to be:

• A)$4.
• B)less than $4.
• C)greater than $6.
• D)greater than $4.

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Definitions:

Subsistence Level

The minimum level of resources (income and goods) that is considered adequate to maintain the livelihood of an individual or household.

Thomas Robert Malthus

An English cleric and scholar, influential in the fields of political economy and demography, known for his theory on population growth.

Standard of Living

The standard of living refers to the degree of wealth, comfort, material goods, and necessities available to a person or community.

Saving Rate

The portion of income that is not spent on consumption but instead is saved or invested.