A Change in the Price of a Good ________ Its

question 172

Multiple Choice

A change in the price of a good ________ its supply curve and ________ a movement along its supply curve.

• A) shifts; causes
• B) shifts; does not cause
• C) does not shift; causes
• D) does not shift; does not cause
• E) None of the above because the change in the price might cause either a shift in the supply curve or a movement along the supply curve depending on the size of the change.

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Definitions:

Flexible Exchange Rates

A foreign exchange system where exchange rates are determined by the supply and demand for currencies and can fluctuate freely.

Nation's Currency

The legal tender or monetary system that a country uses for its economic transactions.

Tastes

The perceived preferences or desires of consumers or individuals, often influencing their behavior and choices.

Exchange Rates

The value of one currency expressed in terms of another currency, used to determine how much of one currency you can exchange for another.