16. Why would Graph IV not be the correct graph? Zero price is not shown on the graph. It should shift to the right, not the left. Changing the price of a good is not shown by a shift in a demand curve. a. b. С.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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please do question 16

P.
Dewand
a
a
-Q
TU
aDemand
Demand
工
Dewelud
Transcribed Image Text:P. Dewand a a -Q TU aDemand Demand 工 Dewelud
15.
Consider Graphs I- IV. (See supplementary graphs.) Which graph represents going
from a positive fare to a zero fare?
Graph I
Graph II
Graph II
a.
b.
С.
16.
Why would Graph IV not be the correct graph?
Zero price is not shown on the graph.
It should shift to the right, not the left.
Changing the price of a good is not shown by a shift in a demand curve.
a.
b.
C.
Transcribed Image Text:15. Consider Graphs I- IV. (See supplementary graphs.) Which graph represents going from a positive fare to a zero fare? Graph I Graph II Graph II a. b. С. 16. Why would Graph IV not be the correct graph? Zero price is not shown on the graph. It should shift to the right, not the left. Changing the price of a good is not shown by a shift in a demand curve. a. b. C.
Expert Solution
Step 1

16. Fare falling from positive to zero is a decrease in price represented by a downward movement along the demand curve. Changes in the price of the good itself causes movement along the demand curve.

Changes in factors such as change in income, price of related good, preferences and tastes, will result in shift of the demand curve. 

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