Graph 7-3 -Refer to Graph 7-3. When the Price Falls from P₂

question 56

Multiple Choice

Graph 7-3

-Refer to Graph 7-3. When the price falls from P₂ to P₁, which of the following is NOT true?

• A) the sellers who still sell the good are worse off because they now receive less
• B) some sellers leave the market because they are not willing to sell the good at the lower price
• C) the total cost of what is now sold by sellers is actually higher
• D) all of the above are correct

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Definitions:

Mathematical Model

A representation of a system using mathematical concepts and language, used to study its behavior and make predictions.

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The layer of gases surrounding Jupiter, primarily composed of hydrogen and helium, with traces of other gases, and known for its Great Red Spot and bands of clouds.

Technological Change

The innovation or improvement in technology, leading to increased efficiency or new capabilities.

Dislocations

Economic disturbances or shifts that result in significant changes to employment, prices, or resource allocation.