A Movement Along the Demand Curve to the Left May

question 60

Multiple Choice

A movement along the demand curve to the left may be caused by a

• A) rise in income.
• B) decrease in supply.
• C) fall in the number of substitute goods.
• D) fall in the price of inputs.

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Definitions:

Monopolistically Competitive

A market structure featuring many firms selling products that are similar but not identical, allowing for some degree of market power and price setting.

Long Run

A period in economics during which all factors of production and costs are variable, allowing firms to adjust all inputs.

Deli

A short form for delicatessen, which is a store or counter specializing in prepared foods, sandwiches, and specialty groceries.

Zero Economic Profits

A condition in perfect competition where firms earn just enough revenue to cover their total costs, leading to no supernormal profit in the long term.