Which Combination of Factors Would Most Likely Shift the ADI

question 48

Multiple Choice

Which combination of factors would most likely shift the ADI curve to the right?

• A) An increase in household indebtedness and a decrease in foreign demand for products.
• B) An increase in consumer wealth and a decrease in interest rates.
• C) An increase in personal taxes and a decrease in government spending.
• D) An increase in business taxes and a decrease in profit expectations.
• E) An increase in demand for foreign products and an increase in interest rates.

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Definitions:

Price Discrimination Strategy

A pricing strategy where a company sells the same product to different buyers at different prices, based on what the seller believes each customer is willing to pay.

Products Online

Goods or services offered for sale on the internet, encompassing a wide range of items from clothing to software, facilitating easier access and broader choices for consumers.

Marginal Revenue

The increased earnings from the sale of one more unit of a product or service.

Purely Competitive

A market structure characterized by a large number of small firms producing identical products with free entry into and exit out of the market.