Suppose a Change Takes Place and the New Equilibrium Is

question 12

Multiple Choice

Suppose a change takes place and the new equilibrium is at point A in the above figure. This change could have been caused by

• A) an increase in the per-unit tax on DVDs.
• B) a decrease in the income of consumers.
• C) a reduction in the wages paid to workers in the DVD industry.
• D) a reduction in the price of DVD players.

---

Definitions:

Contextual

pertains to being related to or dependent on the context or surrounding circumstances that can influence interpretation, meaning, or behavior.

Terrorist

An individual or group engaged in violent activities aimed at instilling fear, typically for political goals.

Freedom Fighter

An individual who engages in resistance or combat against established authorities for liberation or independence.

Perceptions

The process by which individuals organize and interpret their sensory impressions to give meaning to their environment.