7. (Figure: Markets and Goods) Assuming the good represented in the graph is a normal good, which of the following statements could be TRUE? Price $12- 11 10 9 8 7 654321 D₂ D₁ 1 2 3 4 5 6 7 8 9 10 Quantity I. The price of a substitute good decreased. II. The price of a complement good increased. III. The income of consumers increased. IV. The number of buyers in the market increased. 0 A. III only B. II and IV C. I, II, III, and IV D. I and II

7. (Figure: Markets and Goods) Assuming the good represented in the graph is a normal good, which of the following statements could be TRUE? Price $12- 11 10 9 8 7 654321 D₂ D₁ 1 2 3 4 5 6 7 8 9 10 Quantity I. The price of a substitute good decreased. II. The price of a complement good increased. III. The income of consumers increased. IV. The number of buyers in the market increased. 0 A. III only B. II and IV C. I, II, III, and IV D. I and II

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

7. (Figure: Markets and Goods) Assuming the good
represented in the graph is a normal good, which of
the following statements could be TRUE?
Price
$12-
11
10
9
8
7
654321
D₂
D₁
1 2 3 4 5 6 7 8 9 10 Quantity
I. The price of a substitute good decreased.
II. The price of a complement good increased.
III. The income of consumers increased.
IV. The number of buyers in the market increased.
0
A. III only
B. II and IV
C. I, II, III, and IV
D. I and II

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