Suppose That We Illustrate Demand and Supply with Quantity on the Horizontal

question 77

Multiple Choice

Suppose that we illustrate demand and supply with quantity on the horizontal axis and price on the vertical axis. Which of the following statements is false?

• A)The equilibrium remains unchanged unless an exogenous variable changes.
• B)The equilibrium is represented as the intersection of supply and demand curves.
• C)When a shift in demand or supply occurs, a comparative statics analysis compares the old and the new equilibrium points.
• D)A change in price will cause a shift in the demand curve.

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Definitions:

Personal Control

The degree to which an individual believes they can influence their environment and the outcomes of events in their life.

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An attitude of helplessness in which individuals give up trying to cope with threats or to achieve goals because they believe that no action of theirs can be fruitful.

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