The Product Is a Normal Product

question 61

Multiple Choice

The product is a normal product.

-Refer to the graph above to answer this question.Which of the following statements is correct?

• A)Both ab and ac represent an increase in the quantity demanded.
• B)Both ab and ac represent an increase in demand.
• C)While ab represents an increase in demand,ac represents an increase in supply.
• D)While ac represents an increase in demand,ab represents an increase in the quantity supplied.
• E)Both ab and cb represent an increase in demand.

---

Definitions:

Memorandum

A written record or communication used in business or diplomatic activities.

Statute of Frauds

A rule of law mandating that some agreements must be documented in written form to be legally binding.

Signature of Guarantor

The act of signing by a guarantor, who agrees to fulfill the obligations of a debtor in case the debtor fails to meet their commitments.

Written Agreement

A formal, documented contract between parties, outlining terms and conditions that are legally binding.