One Might Explain a Shift to the Right in the Demand

question 14

Multiple Choice

One might explain a shift to the right in the demand curve for normal product A by saying that:

• A)incomes have declined, and consumers now want to buy less of A at every price
• B)the price of A has increased and, as a result, consumers want to buy less of it
• C)preferences have changed in favour of A, so consumers now want to buy more at every price
• D)the price of A has declined and, as a result, consumers want to buy more of it
• E)product A is now more plentiful than before

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Definitions:

Assessed

The determination of the value of a property or income by an official authority for taxation or pricing purposes.

Property Taxes

Taxes levied by local governments based on the assessed value of real estate property owned by individuals or businesses.

Municipal Services

Public amenities and services provided by a city or town government such as water supply, sewage, sanitation, public transportation, and parks.

Governmental Agencies

Governmental agencies are public entities established by governments to enact policies, regulate activities, and administer services in various sectors.