-Refer to Exhibit 3-3.A movement from point W to point Z would have been the result of
A) a reduction in the price of good Y.
B) an increase in the number of buyers in the area where good Y is being sold.
C) a decrease in business taxes paid by the producers of good Y.
D) a decrease in the number of buyers in the area where good Y is being sold.
E) an increase in the price of good Y.

Question

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-Refer to Exhibit 3-3.A movement from point W to point Z would have been the result of
A) a reduction in the price of good Y.
B) an increase in the number of buyers in the area where good Y is being sold.
C) a decrease in business taxes paid by the producers of good Y.
D) a decrease in the number of buyers in the area where good Y is being sold.
E) an increase in the price of good Y.

Quizplus · Accepted Answer

A movement from point W to point Z represents an increase in the price of good Y, hence the answer is E. This is because an increase in price results in a decrease in quantity demanded, leading to a movement up along the demand curve.

​ ​-Refer to Exhibit 3-3.A Movement from Point W to Point

-Refer to Exhibit 3-3.A Movement from Point W to Point