When the Price of a Good Increases, All Else Equal

question 325

Multiple Choice

When the price of a good increases, all else equal, the higher price

• A)reduces the consumer's set of buying opportunities.
• B)leads to a parallel shift of the budget constraint.
• C)will necessarily lead to an increase in the consumption of goods whose price did not change.
• D)generally discourages the consumption of inferior goods.

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Definitions:

Self-Actualization

The act of reaching or fulfilling one's own capabilities and talents, perceived as an inherent desire or requirement in everyone.

Unconscious Motives

Unconscious motives refer to hidden and automatic drivers of behavior that are not accessible to an individual's conscious awareness.

Typical Behavior

Typical behavior refers to actions or reactions that are considered normal or expected in a given context, based on societal standards or norms.

Cognitive-Social Learning

A theory that highlights the role of thought processes (cognition) in the social learning of behaviors, attitudes, and emotions.