Table 3.1 -Refer to Table 3.1.The Table Above Shows the Demand Schedules

question 37

Multiple Choice

Table 3.1
-Refer to Table 3.1.The table above shows the demand schedules for loose-leaf tea of two individuals (Sunil and Mia ) and the rest of the market.If the price of loose-leaf tea rises from $3 to $4, the market quantity demanded would

• A)decrease by 32 kgs.
• B)increase by 64 kgs.
• C)increase by 32 kgs.
• D)decrease by 64 kgs.

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Definitions:

Income

Payment for services or from investment returns, customarily coming in at steady intervals.

Preferences

In economics, it refers to the ordering of different alternatives by individuals based on their satisfaction, utility, or happiness.

Compensating Variation

A measure in economics of the amount of money one would need to reach their original utility level after a change in price or income.

Equivalent Variation

An economic measure of the amount of money that leaves an individual equally well off, given changes in prices or utility.