When the Price of a Good Falls and Customers Tend

question 34

Multiple Choice

When the price of a good falls and customers tend to buy it instead of other goods, this is called the__________ effect.

• A) substitution
• B) diminishing marginal utility
• C) income
• D) ceteris paribus

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Definitions:

Two-Bedroom Homes

Residences featuring two bedrooms along with other living spaces such as a living room, kitchen, and bathroom, catering to small families or roommates.

Four-Bedroom Homes

Residential properties specifically designed with four bedrooms, catering to the housing needs of medium to large families or providing additional space for offices or guest rooms.

Three-Bedroom Homes

Residential properties designed with three sleeping rooms, catering to families or groups needing multiple sleeping areas.

Increase

An upward adjustment in size, number, value, or strength.