Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for tuna. Which panel best describes what happens in this market when there is a decrease in the productivity of commercial fishermen?

The marginal propensity to consume: a. is the proportion of disposable income that is consumed

b. is the ratio of disposable income to consumption. c. is the change in consumption relative to a change in disposable income. d. minus the marginal propensity to save must equal 1. e. is greater than 1 at all levels of income.

(Advanced analysis) Answer the question on the basis of the following information. The demand for commodity X is represented by the equation P = 100 - 2Q and supply by the equation P = 10 + 4Q. Refer to the given information. If demand changed from P =

100 - 2Q to P = 130 - Q, the new equilibrium price is: A. $90. B. $110. C. $96. D. $106.