Which of the Following Market Outcomes Can Be Explained by the Supply-Demand

question 77

Multiple Choice

Which of the following market outcomes can be explained by the supply-demand model?

• A)An increase in the demand for cigarettes after an increase in its price
• B)A decrease in household consumption following an increase in average monthly income
• C)An increase in supply in spite of a decline in input prices
• D)An increase in the per capita consumption of medical care in a country due to an epidemic

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Definitions:

Economic Security

A condition in which individuals or communities have the assurance that their basic economic needs, such as food, shelter, and income, will be met.

Social Security

A government program designed to provide financial assistance to people who are retired, unemployed, or disabled.

Harvest Gypsies

A term historically used to describe itinerant agricultural workers, particularly those who moved from farm to farm during the harvest seasons.

Migrant Farm Workers

Individuals who travel from one location to another, often seasonally, to work in agriculture, usually under temporary contracts and often facing challenging conditions.