FIGURE 12-5 -Figure 12-5 Above Shows That When the Price Moves from Price

question 96

Multiple Choice

FIGURE 12-5
-Figure 12-5 above shows that when the price moves from $2.00 to $1.50 per unit, the quantity demanded increases from 3 million to 4.5 million.This is an example of a

• A)shift of demand curve.
• B)scaling back a demand curve.
• C)price elasticity curve.
• D)price inelasticity curve.
• E)movement along a demand curve.

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Definitions:

Milton Friedman

An influential American economist known for his strong advocacy of free-market capitalism and for his role in the Chicago School of Economics.

John Maynard Keynes

A British economist whose theories on the importance of government intervention in economies during downturns led to the development of Keynesian economics.

Marginal Propensity

The ratio of the change in an economic agent's consumption as a result of a change in income, influencing saving and spending habits.

Save

To allocate income or resources for future use instead of immediate consumption, often by placing it in some form of a bank account or investment.