Figure 32 Alt Text for Figure 3

question 167

Multiple Choice

Figure 3.2 Alt text for Figure 3.2: In figure 3.2, a graph of the effect of an increase in the price of a complement on demand curve.
Long description for Figure 3.2: The x-axis is labelled, Quantity, and y-axis is labelled, Price.Curve Demand, D1, is a straight line which slopes down from the top left corner to the bottom right corner.Curve D2 follows the same slope as curve D1, but is plotted to the right.2 points, A and B, are plotted in the middle of curve D1.A right pointing arrow indicates the change from curve D1 to curve D2.
-Refer to Figure 3.2.If the product represented is a normal good, an increase in income would be represented by a movement from

• A)A to B.
• B)B to A.
• C)D₁ to D₂.
• D)D₂ to D₁.

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Definitions:

Income Approach

A method of calculating GDP that sums up total national income, including wages, rent, interest, and profits.

Consumer Price Index (CPI)

An indicator used to gauge inflation by examining the weighted average prices of a selection of consumer products and services.

Circular Flow

A model that illustrates the movement of goods, services, and money among households, businesses, government, and the foreign sector in an economy.

Leakages

In economics, it refers to the withdrawal of potential spending from the economy's circular flow, primarily through savings, taxes, and imports.