Figure 3-2 -According to Figure 3-2,an Increase in the Price from $0.40

question 128

Multiple Choice

Figure 3-2
-According to Figure 3-2,an increase in the price from $0.40 to $0.60 will result in

• A)an increase in quantity supplied of 20 million litres.
• B)a shortage of 30 million litres.
• C)an increase in demand of 20 million litres.
• D)an increase in quantity demanded of 10 million litres.

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Definitions:

Investment

The allocation of resources, such as capital, to generate income or profit.

Standard of Living

A measure of the wealth, comfort, material goods, and necessities available to a certain socioeconomic class or a certain geographic area.

Municipal Bonds

Municipal bonds are debt securities issued by states, cities, counties, and other governmental entities to fund day-to-day obligations and to finance capital projects such as building schools, highways, or sewer systems.

Tax Treatment

The way in which a particular financial transaction or investment is taxed by government policy, affecting incentives and behaviors.