Exhibit 4-8

question 12

Multiple Choice

Exhibit 4-8
-Refer to Exhibit 4-8. A shift from demand curve D to demand curve D' would be caused by a(n)

• A)decrease in the price of the product under consideration
• B)significant decrease in population because of emigration
• C)increase in consumer income
• D)decrease in the number of producers of the product
• E)increase in the price of a relevant resource

---

Definitions:

Excess Supply

A situation where the quantity of a product offered for sale exceeds the quantity demanded at the current price, often leading to a decrease in price.

Market Equilibrium

Market Equilibrium is the point where the quantity of a good or service supplied equals the quantity demanded, leading to a stable market price.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price.

Wage Rate

The amount of money paid to an employee by an employer for a unit of time worked, often expressed per hour or per year.