-In the Above Figure, If D? Is the Original Demand

question 491

Multiple Choice

-In the above figure, if D? is the original demand curve and the price of a substitute in consumption rises, which price and quantity might result?

• A) point a, with price P? and quantity Q?
• B) point b, with price P? and quantity Q?
• C) point c, with price P? and quantity Q?
• D) point d, with price P? and quantity Q?

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Definitions:

Price Mechanism

The process through which prices rise and fall as a result of changes in supply and demand, guiding economic decisions and resource allocation.

Communism

An economic system characterized by collective ownership of most resources and central planning.

Modified Version

A version that has been altered or adjusted from its original form.

Socialist Economy

An economic system where the means of production, distribution, and exchange are owned or regulated by the community as a whole.