-In Figure 11-3B Above, the Demand Curve Shifts from D₁

question 392

Multiple Choice

-In Figure 11-3B above, the demand curve shifts from D₁ to D₂. This most likely represents

• A)an increase in demand that did not require a change in price but was the result of a change in one or more demand factors.
• B)an increase in demand that required a decrease in price.
• C)no change in price and a decrease in demand that results from internal business practice changes.
• D)no change in demand or price but a greater profit due to economies of scale.
• E)an decrease in price from $8 to $6 per unit.

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Definitions:

Tacit Collusion

An unspoken, illegal agreement among competitors to avoid competing directly, often leading to higher prices.

Explicit Collusion

An overt agreement among firms within an industry to fix prices, limit production, or engage in other anticompetitive practices.

Tit-For-Tat

A strategy in game theory where a participant replicates an opponent's previous action, whether cooperative or competitive.

Strategy

A plan of action designed to achieve a long-term or overall aim, often used in various contexts like business, gaming, military, and personal planning.