Which of the Following Is True

question 9

Multiple Choice

Which of the following is true?

• A) Buyers always prefer lower prices to higher prices.
• B) Buyers never prefer lower prices to higher prices.
• C) Buyers rarely prefer lower prices to higher prices.
• D) Buyers prefer lower prices to higher prices,ceteris paribus.

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Definitions:

Tariffs

Government levies on goods and services brought into the country, frequently employed to safeguard local industries against overseas rivals.

Absolute Advantage

The ability of an entity to produce a good or service more efficiently than its competitors, using fewer resources.

Textiles

Materials made from fibers, filaments, threads, or yarns, typically used in the production of fabrics and cloth.

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost compared to others.