Exhibit 5-3 Use the Following Information About Demand and Supply

question 105

Multiple Choice

Exhibit 5-3 Use the following information about demand and supply schedules to answer the question.
Refer to Exhibit 5-3.Suppose that D₁ and S₁ are the prevailing demand and supply curves for a product.If the demand schedule changes from D₁ to D₂,then:

• A) equilibrium price decreases from $6 to $4.
• B) equilibrium quantity decreases from 15 to 13.
• C) equilibrium quantity increases from 13 to 18.
• D) equilibrium price increases from $6 to $8.

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Definitions:

Biotic Potential

The maximum reproductive capacity of an organism under optimal environmental conditions.

Environmental Resistance

Factors in the environment that limit the growth, abundance, or distribution of an organism or population.

Ecological Niche

The role and position a species has in its environment, including all its interactions with the biotic and abiotic factors.

Population

Group of organisms of the same species occupying a certain area and sharing a common gene pool.