Refer to the Above Diagram,which Shows Demand and Supply Conditions

question 34

Multiple Choice

Refer to the above diagram,which shows demand and supply conditions in the competitive market for product X.A shift in the demand curve from D₀ to D₁ might be caused by a(n) :

• A) decrease in income if X is an inferior good.
• B) increase in the price of complementary good Y.
• C) increase in money incomes if X is a normal good.
• D) increase in the price of substitute product Y.

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Definitions:

Current Liabilities

Obligations expected to require cash in less than one year, usually payables and accruals.

Temporary Working Capital

Additional working capital needed to support the fluctuating levels of business activity.

Cyclical Nature

Describes a pattern that repeats in cycles, often used in economics to describe the fluctuations in the economy over periods of expansions and recessions.

Seasonal

Pertaining to or occurring during a particular season of the year, often implying changes in business activities, market demand, or weather patterns that recur annually.