Question

Suppose that there are 3 variables involved in the right: quantity, price, and a third variable. Which of those variables causes the quantity to change from point C to point D in the graph?

1) Quantity
2) Price
3) Third variable
4) Cannot be determined

Answer 1

The change in quantity from point C to point D in the graph cannot be determined without further information about the third variable. The correct answer is 4) Cannot be determined.

Step-by-step explanation:

In this case, the graph represents changes in quantity and price, with a third variable influencing the shift from point C to point D. To determine which variable is causing the change, we need to analyze the factors that shift the demand and supply curves.

If the third variable causes a shift in the demand curve, then the quantity will change. If it causes a shift in the supply curve, then the price will change. However, without further information about the specific nature of the third variable, we cannot determine which one is causing the change from point C to point D.

Therefore, the correct answer is 4) Cannot be determined.