If Good Growing Conditions Increase the Supply of Strawberries and Hot

question 187

Multiple Choice

If good growing conditions increase the supply of strawberries and hot weather increases the demand for strawberries, the quantity of strawberries bought__________ .

• A) doesnʹt change and the price falls
• B) increases and the price rises
• C) doesnʹt change and the price rises
• D) increases and the price might rise, fall or not change

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Definitions:

Consumption Spending

The total amount of money spent by households and individuals on goods and services within a specific time period.

Marginal Propensity

A measure of how much an individual's consumption changes with a change in income.

Disposable Income

The cash reserves left for households to spend and save after paying income taxes.

Disposable Income

Funds households have for saving and spending following the deduction of income taxes.