Figure 3-2 -Refer to Figure 3-2. an Increase in the Number of the Number

question 195

Multiple Choice

Figure 3-2
-Refer to Figure 3-2. An increase in the number of firms in the market would be represented by a movement from

• A) A to B.
• B) B to A.
• C) S₁ to S₂.
• D) S₂ to S₁.

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Definitions:

Loanable Funds

Refers to the market where savers supply funds for loans to borrowers.

Durable Consumer Goods

Products that are not consumed or destroyed in use and are able to provide utility over time, such as appliances, cars, or furniture.

Loanable Funds

The money available for lending and borrowing in the financial markets.

Opportunity Cost

The value of the next best alternative foregone as the result of making a decision.