Which of the Following Is Most Clearly Consistent with the Basic

question 133

Multiple Choice

Which of the following is most clearly consistent with the basic postulate of economics regarding the reaction of people to a change in incentives.

• A) Farmers produce fewer bushels of wheat in response to an increase in the price of wheat.
• B) People will buy more milk at a price of $2 per gallon than at $1 per gallon.
• C) People will buy less gas if the price of gas increases by $.20 per gallon.
• D) People will consume more beef if the price increases from $1 to $2 per pound.

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Definitions:

Rules of Behavior

Guidelines or principles designed to govern conduct or actions within a specific context or society, often outlining acceptable and unacceptable behaviors.

Authority

The power or right to direct or control someone or something.

Developmentally Changing Competencies

Skills or abilities that evolve or improve over time as a person grows or develops.

Flexibility

The ability to adapt to new, different, or changing requirements and situations.