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.

---

Definitions:

Globalization

The process of interaction and integration among people, companies, and governments worldwide, often driven by international trade and investment.

Research And Development (R&D) Center

A facility or department dedicated to investigating and developing new products, processes, or technologies.

Gross Domestic Product (GDP)

The total market value of all goods and services produced within a country in a given period, often used as an indicator of the economic health of a country.

Skills Shortage

A situation where the demand for a specific skill set exceeds the supply of individuals with those skills within a labor market.