Figure 7-18 -Refer to Figure 7-18.If the Price Decreases from $22 to Decreases

question 300

Multiple Choice

Figure 7-18

-Refer to Figure 7-18.If the price decreases from $22 to $16 due to a shift in the supply curve,consumer surplus increases by

• A) $120.
• B) $360.
• C) $480.
• D) $600.

---

Definitions:

Disposable Income

The net income available to individuals or households after taxes have been deducted, available for spending, saving, or investing.

Consumption

The act of using goods and services by households, contributing to the overall demand in an economy.

Consumption Function

An economic formula that represents the relationship between total consumption and gross national income.

Disposable Income

The financial resources families have for expenditures and savings after income taxes are removed.