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Exhibit 4-4 Supply and Demand Curves for Good X

Question 14

Multiple Choice

Exhibit 4-4 Supply and demand curves for good X Exhibit 4-4 Supply and demand curves for good X A decrease in buyers' income, assuming good X is a normal good, combined with a decrease in the wage rate paid to workers producing good X would be represented by which of the following changes in equilibrium shown in Graph C of Exhibit 4-4? A) E<sub>1</sub> to E<sub>2</sub>. B) E<sub>1</sub> to E<sub>3</sub>. C) E<sub>3</sub> to E<sub>2</sub>. D) E<sub>1</sub> to E<sub>4</sub>. A decrease in buyers' income, assuming good X is a normal good, combined with a decrease in the wage rate paid to workers producing good X would be represented by which of the following changes in equilibrium shown in Graph C of Exhibit 4-4?


A) E1 to E2.
B) E1 to E3.
C) E3 to E2.
D) E1 to E4.

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