Figure 3-5 -In Figure 3-5,suppose a Change Takes Place and as a and as a Result

question 168

Multiple Choice

Figure 3-5
-In Figure 3-5,suppose a change takes place and as a result a new equilibrium occurs at point D.The change could have been caused by

• A)a reduction in the wages paid to workers in the CD industry.
• B)a decrease in the incomes of consumers.
• C)an increase in the tax on CDs.
• D)an increase in demand for CDs.

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Definitions:

Payments to Labor

Payments to Labor refer to the wages, salaries, and benefits paid to employees for their work in producing goods or services.

Total Income

The sum of all earnings or revenue generated by an individual or entity.

United States

A nation situated in North America, made up of 50 states and one federal district, renowned for its vast economy and varied demographics.

Factors of Production

The inputs used in the production of goods or services in the process of economic activity, including land, labor, capital, and entrepreneurship.