Figure 4-6 -Refer to Figure 4-6.If the Demand Curve Shifts from D

question 59

Multiple Choice

Figure 4-6

-Refer to Figure 4-6.If the demand curve shifts from D to D',then

• A) firms would be willing to supply less of the good than before at each possible price.
• B) people are willing to buy less of the good than before at each possible price.
• C) people's incomes must have decreased.
• D) the price of the product has increased, causing consumers to buy less of the product.

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Definitions:

Markets

Places or systems where buyers and sellers interact to trade goods, services, or resources.

Free Enterprise

An economic system where private individuals rather than the government have the right to own property and conduct businesses, subject to minimal regulatory constraints.

Laissez-Faire

A belief system in economics that supports capitalism with minimal to no government interference.

Market System

An economic system in which decisions regarding investment, production, and distribution are based on supply and demand, and prices of goods and services are determined in a free price system.