You Observe That the Price of a Good Rises and the Quantity

question 64

Multiple Choice

You observe that the price of a good rises and the quantity decreases. These observations can be the result of the

• A) demand curve shifting rightward.
• B) demand curve shifting leftward.
• C) supply curve shifting rightward.
• D) supply curve shifting leftward.

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Definitions:

Tax

A compulsory monetary fee or a different kind of charge levied on a taxpayer by a government entity to finance government expenses and various public costs.

Buyers

Individuals or entities that purchase goods or services for consumption, use, or investment.

Total Surplus

The combined benefit that all participants (consumers and producers) receive in a market, represented by the sum of consumer and producer surplus.

Market Equilibrium

A condition in a market where the quantity demanded equals the quantity supplied, leading to a stable price.