If Demand Decreases, Ceteris Paribus, Market Price Will Be ______

question 51

Multiple Choice

If demand decreases, ceteris paribus, market price will be ______ at the new equilibrium point.

• A) higher
• B) lower
• C) the same
• D) either higher or lower

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Definitions:

Consumption Function

A macroeconomic term that describes the relationship between total consumption and gross national income.

Aggregate Income

Aggregate Income is the total income earned by all individuals or entities in the economy within a specific period.

Consumption Function

An economic formula representing the relationship between total consumption and gross national income, indicating how income changes affect spending habits.

Aggregate Income

The total income earned by all factors of production in an economy over a specific time period, including wages, rents, interest, and profits.