The Growing Popularity of Energy Conservation Has Enticed Large Home

question 210

Multiple Choice

The growing popularity of energy conservation has enticed large home improvement stores like Rona to offer tankless water heaters.How does the fact that home improvement stores now offer these products affect the tankless water heater market?

• A)The demand curve for tankless water heaters shifts to the right.
• B)The demand curve for tankless water heaters shifts to the left.
• C)The supply curve for tankless water heaters shifts to the right.
• D)The supply curve for tankless water heaters shifts to the left.

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Definitions:

Compensating Variation

An economic concept describing the amount of additional income that would leave someone as well off after a price change as they were before it.

Price of Earrings

The amount of money required to purchase earrings, which can vary based on materials, brand, and design.

Utility Function

An analytical model that illustrates how buyers prioritize various combinations of products based on the amount of pleasure or utility derived from those combinations.

Consumer's Surplus

The variance between the aggregate sum consumers intend and have the means to pay for a good or service, and the sum they actually pay.