If There Is an Increase in the Price of Good

question 195

Multiple Choice

If there is an increase in the price of good Z and the quantity demanded of Z goes down, a possible explanation for this is:

• A) Z is a normal good.
• B) the substitution effect.
• C) Z is a Giffen good.
• D) both A and B are correct.

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Definitions:

Raw Materials

Basic materials that are used in the production of goods, finished products, or intermediate materials that are feedstock for future finished products.

Telephone Lines

Telephone lines refer to the traditional telecommunication wire or fiber cable infrastructure used to connect phone calls over distances.

High-Income Countries

Nations characterized by high gross national income per capita, advanced economic infrastructure, and a high standard of living.

Birth Rates

The number of live births per thousand people in a population over a given period of time, reflecting the rate at which new individuals are added to the population.