The Following Questions Refer to the Graph Below

question 15

Multiple Choice

The Following Questions Refer to the graph below.
-If the market starts in equilibrium with D₁ and S₁,and equilibrium price and quantity increase to $10 and 65,which of the following could have caused the change?

• A)An increase in consumer income
• B)An increase in production costs
• C)The discovery that Dr.Pepper causes health problems
• D)A technological advance in Dr.Pepper production
• E)All of the above

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Definitions:

Irrational

Characterized by actions or thoughts that lack reason or sound judgment, often driven by emotions rather than logical reasoning.

Emotional Part

A component of human psychology that involves feelings, moods, and affective states.

Rational Part

The aspect of the human mind or personality that is responsible for logic, reasoning, and analytical thought.

Id

In psychoanalytic theory, the part of the psyche that is the source of instinctual drives and desires, operating on the pleasure principle.