Exhibit 5.7 -Refer to Exhibit 5.7,which Shows Four Demand Curves.If D(2)is the Demand

question 115

Multiple Choice

Exhibit 5.7

-Refer to Exhibit 5.7,which shows four demand curves.If D(2) is the demand curve after a price increase,which demand curve best illustrates how consumers will respond to the change in price over one year?

• A)curve D(1)
• B)curve D(2)
• C)curve D(4)
• D)curve D(3)
• E)curve D(1) or curve D(4)

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