Assume the Market in the Graph Shown Was Originally at an Equilibrium

question 13

Multiple Choice

Assume the market in the graph shown was originally at an equilibrium with demand D and supply S.Suppose Demand shifts and becomes D₂.What might have caused such a shift?

• A) The good became more popular.
• B) People expect the price of this good to drop in the near future.
• C) The good became cheaper to produce.
• D) Substitutes for this good became less expensive.

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Definitions:

Reversibility

The understanding that certain operations or actions can be done and then undone, returning to the original state, a concept crucial in cognitive development.

Preoperational Stage

A developmental phase, posited by Jean Piaget, where children from ages 2 to 7 engage in symbolic play and struggle with logic and taking the perspective of others.

Egocentric

In cognitive development, the inability to differentiate between one’s own perspective and someone else’s perspective.

Sensorimotor Period

The stage of cognitive development in early childhood characterized by the integration of sensory and motor activities.