An Increase in the Price of a Product Will Reduce

question 168

Multiple Choice

An increase in the price of a product will reduce the amount of it purchased because:

• A) supply curves are upsloping.
• B) the higher price means that real incomes have risen.
• C) consumers will substitute other products for the one whose price has risen.
• D) consumers substitute relatively high-priced for relatively low-priced products.