For the following questions, consult the diagram below.
Figure 15-2 
-Refer to Figure 15-2. In a closed economy, which of the following could have caused the economy to move from a to b?
Definitions:
Elastic Demand
A situation in which the demand for a product is sensitive to price changes, indicated by a greater change in quantity demanded.
Labor Costs
The total amount of money businesses have to spend on paying their employees, including wages, salaries, and benefits.
Wage Rates
The amount of money paid per unit of time or output to an employee for labor.
Employment Decline
A reduction in the number of jobs or the rate of employment within an economy.
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