Refer to the Above Diagram,in Which S₁ and D₁ Represent

question 130

Multiple Choice

Refer to the above diagram,in which S₁ and D₁ represent the original supply and demand curves and S₂ and D₂ the new curves.In this market the indicated shift in demand may have been caused by:

• A) a decline in the number of buyers in the market.
• B) a decline in the price of a substitute good.
• C) an increase in incomes if the product is a normal good.
• D) an increase in incomes if the product is an inferior good.

---

Definitions:

Timber Industry

The Timber Industry involves the operations of harvesting, processing, and selling wood and wood products, which are used for building, manufacturing, and various other purposes.

Expansion of Medicaid

The extension of Medicaid coverage to more low-income individuals and families, often associated with policies enacted under healthcare reform, such as the Affordable Care Act.

Affordable Care Act

A comprehensive health care reform law enacted in March 2010, aimed at expanding health insurance coverage and reducing the costs of health care for Americans.

Constitutionality

The quality of being in accordance with a constitution, especially with regard to laws and governmental actions.