Figure 4-6 -Refer to Figure 4-6. If the Demand Curve Shifts from Curve

question 180

Multiple Choice

Figure 4-6
-Refer to Figure 4-6. If the demand curve shifts from D₁ to D, what do we know?

• A)Firms would be willing to supply less than before.
• B)People are less willing to buy the product at any price than before.
• C)People are now more willing to buy the product at any price than before.
• D)The price of the product has decreased, causing consumers to buy more of the product.

---

Definitions:

Excise Tax

A tax levied on specific goods, services, or transactions, often imposed on items such as alcohol, tobacco, and gasoline.

Price-Elastic Demand

The characteristic of demand for a good indicating that a change in price results in a relatively larger change in the quantity demanded.

Excise Tax

A tax on the sale or use of specific products or transactions, typically integrated directly into the cost of the good.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, often influenced by the availability of substitutes.