If the Price of a Product Increases, We Would Expect

question 96

Multiple Choice

If the price of a product increases, we would expect:

• A)demand to decrease.
• B)quantity supplied to increase.
• C)supply to decrease.
• D)quantity demanded to increase.

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Definitions:

Service

A provision of intangible benefits or assistance, such as consulting, maintenance, or support, to satisfy consumer needs.

Product Cannibalization

The reduction in sales volume, revenue, or market share of one product as a result of the introduction of a new product by the same producer.

New-Category Entries

Products or services that introduce a new category to the market, often requiring the creation of demand and consumer education.

Planned Obsolescence

A business strategy in which the obsolescence of a product is planned and built into it from its conception, ensuring that consumers will need to purchase new products.