Figure 4-8 -Refer to Figure 4-8.Suppose the Figure Shows the Market Demand

question 38

Multiple Choice

Figure 4-8
-Refer to Figure 4-8.Suppose the figure shows the market demand for coffee.Suppose the price of tea,a substitute good,increases.Which of the following changes would occur?

• A)a movement along D2 from point A to point B
• B)a movement along D2 from point B to point A
• C)a shift from D1 to D2
• D)a shift from D2 to D1

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Definitions:

Scones

Scones are a type of baked goods, originating from the United Kingdom, often lightly sweetened and served with tea.

Budget Constraint

An economic model representing all the combinations of goods and services that a consumer can afford with a fixed budget.

Budget Line

A graphical representation showing the combination of two goods that can be purchased with a specific budget at set prices.

Jeans

A type of trousers typically made from denim or dungaree cloth, often regarded as a staple in casual fashion.