Refer to Figure 20.4 for the Following Questions

question 251

Multiple Choice

Refer to Figure 20.4 for the following questions.
Figure 20.4
-Which of the following would cause the change depicted in Figure 20.4? Note that the figure depicts the quantity of euros traded.

• A) Australian productivity falls relative to European productivity.
• B) Australians decrease their preferences for goods produced in the European Union (E
• U) relative to Australian goods.
• C) The EU increases its quotas on Italian wine.
• D) The price level of goods produced in the EU decreases relative to the price level of goods produced in Australia.

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Definitions:

Health Care Services

Services provided to individuals or communities to promote, maintain, monitor, or restore health.

Alternative Goods

Products or services that can be used in place of each other; satisfying the same need or want, essentially serving as substitutes.

Elasticity Of Demand

An assessment showing the influence of price adjustments on the quantity demanded of a product.

Price Increase

A rise in the cost of goods or services, often measured as a percentage of the previous price.