Why Does Quantity Demanded Decrease When Price Increases

question 82

Multiple Choice

Why does quantity demanded decrease when price increases?

• A)People choose to reduce consumption of the item.
• B)People "drop out" of the market for the item.
• C)People find substitutes for the item.
• D)All of the above are correct.

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Definitions:

Learned Helplessness

A condition in which a person suffers from a sense of powerlessness, arising from a traumatic event or persistent failure to succeed.

Behavioral Disengagement

A coping strategy involving reduction of effort or withdrawal from a task or situation.

Catharsis

The method of discharging and therefore delivering relief from powerful or stifled emotions.

Endocrine System

A network of glands in the body that produces and releases hormones into the bloodstream to regulate various bodily functions.