This Graph Depicts the Demand for a Normal Good

question 42

Multiple Choice

This graph depicts the demand for a normal good. A shift from A to B in the graph shown might be caused by:

• A) a decrease in the price of a substitute.
• B) a decrease in the price of a complement.
• C) an increase in the price of a complement.
• D) an increase in the good's price.

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Definitions:

Incentives

Financial or non-financial rewards offered to encourage specific behaviors or actions among individuals or organizations.

Trade

The exchange of goods or services between parties in return for other goods, services, or money.

Gains From Trade

The benefits that entities receive from the voluntary exchange of goods or services, typically leading to an improvement in overall welfare.

Street Lighting

A service provided, often by local governments, that involves the installation and maintenance of public lighting along streets and in public areas for safety and visibility.