Figure 4-7 -Refer to Figure 4-7.The Movement from Da to Db in to Db

question 66

Multiple Choice

Figure 4-7
-Refer to Figure 4-7.The movement from Da to Db in the market for potato chips could be caused by a(n)

• A)decrease in the price of potato chips.
• B)decrease in income,assuming that potato chips are a normal good.
• C)announcement by the FDA that potato chips cause cancer.
• D)increase in the price of a pretzels.

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Definitions:

Industry Life Cycle

A concept that describes the stages of growth and development that an industry goes through from inception, through growth, maturity, and eventually decline.

Stock Prices

The current market price at which shares of a company are bought or sold.

Supply Shock

An unexpected event that suddenly changes the supply of a product or commodity, leading to a rapid change in its price.

Corporate Earnings

The profit a company makes after deducting the costs of doing business, such as expenses, taxes, and more, usually reported quarterly.