Suppose We Observe a Fall in the Price of Good

question 167

Multiple Choice

Suppose we observe a fall in the price of good A and a decrease in the quantity of good A bought and sold.Which one of the following is a likely explanation?

• A)The law of demand is violated.
• B)The supply of A decreased.
• C)The supply of A increased.
• D)The demand for A increased.
• E)The demand for A decreased.

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Definitions:

Validity

The extent to which a test, measure, or research study accurately represents or measures what it is intended to, ensuring the findings are truthful and applicable.

True Zero

A point on a scale which indicates the absolute absence of the quantity being measured.

Computed

Calculated or processed using a computer or computational method.