Figure 4-7

-Refer to Figure 4-7.The graphs show the demand for cigarettes.In Panel (a),the arrows are consistent with which of the following events?

Question

Figure 4-7

-Refer to Figure 4-7.The graphs show the demand for cigarettes.In Panel (a),the arrows are consistent with which of the following events?

Quizplus · Accepted Answer

Panel (a) shows a decrease in quantity demanded as the price of cigarettes increases. Therefore, the arrows are consistent with the event of the price of cigarettes increasing. Choices A and B are not consistent with the graph, as they do not explain the decrease in quantity demanded as the price increases. Choice D is incorrect, as the arrows cannot be consistent with all of the events stated.

Figure 4-7 -Refer to Figure 4-7.The Graphs Show the Demand for Cigarettes.In