Refer to the Accompanying Figure

question 3

Multiple Choice

Refer to the accompanying figure. Moving from demand curve D2 to demand curve D1 could be caused by a(n) :

• A)increase in the product's expected future price.
• B)increase in quantity supplied.
• C)increase in the price of a substitute.
• D)increase in the price of a complement.

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Definitions:

Domestic Opportunity Cost

The cost of forgoing the next best alternative use of a country's own resources.

Comparative Advantage

The principle that countries or entities should produce goods and services where they have a lower opportunity cost compared to others.

Domestic Opportunity Cost

The cost of forgoing the next best alternative when choosing to produce a good or service domestically.

Comparative Advantage

The ability of an individual or group to carry out a particular economic activity (such as making a specific product) more efficiently than another activity.