Sometimes Price Cuts Can Have an Unintended Result of Consumers

question 21

Multiple Choice

Sometimes price cuts can have an unintended result of consumers waiting for deeper discounts. What does this waiting suggest about supply and demand?

• A) The demand curve slopes the wrong way because price cuts have lead to smaller sales.
• B) If buyers are buying less when price falls, the supply curve must have moved left.
• C) If buyers are buying less when price falls, the supply curve must have moved right.
• D) Price cuts have changed buyers' expectations, and the change in expectations has moved the demand curve left.

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Definitions:

Anticoagulant

A substance that prevents blood clotting, thereby reducing the risk of heart attacks, strokes, and other serious conditions.

Carbon Dioxide

An invisible, scentless gas formed from the combustion of carbon-based substances and breathing.

Oxygen

A colorless, odorless reactive gas, the life-supporting component of the air.

Erythropoiesis

The process by which red blood cells (erythrocytes) are produced, which occurs in the bone marrow.