Figure: Price and Quantity 4 If the Figure Depicts

question 182

Multiple Choice

Figure: Price and Quantity 4 If the figure depicts a market for an inferior good, which of the following statements describes what could have happened?

• A) Consumer income increased, causing an increase in demand and an increase in supply.
• B) Consumer income decreased, causing an increase in demand and an increase in quantity supplied.
• C) The price of a substitute good increased, causing an increase in quantity demanded and an increase in quantity supplied.
• D) Consumers expect lower future prices, causing an increase in demand and an increase in supply.

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Definitions:

Risk Level

The degree of uncertainty or potential financial loss inherent in an investment decision.

Standard Deviation

An indicator of the degree of spread or diversity within a collection of numbers.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Good Economy

A state of economic health characterized by strong growth, low unemployment, and stable prices.