Consider a Local Market for 4-Litre Containers of Windshield-Wiper Fluid

question 157

Multiple Choice

Consider a local market for 4-litre containers of windshield-wiper fluid.In January 2015,100 000 containers were sold at a price of $3 each.In March 2015,120 000 containers are sold at a price of $8 each.Does this change in equilibrium price and quantity violate the "law of demand"?

• A)Not necessarily,because the supply curve could have shifted to the right,leading to an increase in equilibrium price and quantity.
• B)Not necessarily,because the demand curve could have shifted to the right,leading to an increase in equilibrium price and quantity.
• C)Not necessarily,because the demand curve could have shifted to the left,leading to an increase in equilibrium price and quantity.
• D)Not necessarily,because the supply curve could have shifted to the left,leading to an increase in equilibrium price and quantity.
• E)No,because the "law of demand" is not valid.

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Definitions:

Printer A

A device or machine that reproduces text and images on paper or other media.

Critical Numbers

Critical numbers of a function are values of the variable at which the derivative of the function is 0 or undefined.

Horizontal Distance

Represents the straight-line distance between two points on a plane, measured along a line parallel to the horizontal axis.

Ground

Often refers to the reference point in an electrical circuit from which voltages are measured, a common return path for electric current, or a direct physical connection to the Earth.