The Market Price of Apples Is Currently Rising

question 106

Multiple Choice

The market price of apples is currently rising. In a free-market economy, the most likely explanation of this price change is that:

• A) the government has decided to set a higher price so that firms competing in the market make an adequate profit.
• B) there is a shortage in the market for apples.
• C) the supply of money has decreased.
• D) the equilibrium price is lower than the market price.

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Definitions:

Refractory Period

In the sexual response cycle, a period of time following orgasm during which an individual is not responsive to sexual stimulation.

Resolution Phase

The final phase in the sexual response cycle, during which the body slowly returns to its normal level of functioning, and a sense of well-being often occurs.

Incentive

An object, person, or situation perceived as capable of satisfying a need or as desirable for its own sake.

Drive

A condition of arousal in an organism that is associated with a need.