-Refer to Exhibit 3-5

question 109

Multiple Choice

-Refer to Exhibit 3-5.In the market shown,a rightward shift in demand from D₁ to D₂ could have been caused by

• A) an increase in the number of sellers in the market.
• B) an improvement in technology in the production of this good.
• C) a decrease in buyers' income (assuming the good is an inferior good).
• D) a decrease in buyers' income (assuming the good is a normal good).
• E) a and b

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Definitions:

Das Kapital

A foundational theoretical text in communist philosophy, economics, and politics, written by Karl Marx, which critiques the economic systems of capitalism.

Adam Smith

A Scottish economist and philosopher known as the "father of economics" and the author of "The Wealth of Nations," which laid the foundation for classical economics.

Entrepreneur

A person who establishes, arranges, and manages one or more businesses, assuming higher-than-usual financial risks to achieve this.

"Invisible Hand"

A metaphor introduced by Adam Smith to describe how individual self-interest and competition can lead to social and economic benefits.