People Will Buy More If the Price Level

question 11

Multiple Choice

People will buy more if the price level

• A)rises because rising prices increase the real value of a dollar.
• B)rises because rising prices decrease the real value of a dollar.
• C)falls because falling prices increase the real value of a dollar.
• D)falls because falling prices decrease the real value of a dollar.

---

Definitions:

Bulk Purchase

The acquisition of goods in large quantities, often at a reduced price, typically for the purpose of resale or large-scale operations.

Value/Cost Scale

A ratio or comparative metric assessing the benefit (value) received relative to the resources (cost) expended.

Criticality Scale

A measure or ranking that identifies the relative importance or urgency of issues, items, or conditions, often used in risk management and prioritization processes.

Strategic Item

A product or raw material critical to a company's business operations, often because it influences product quality or is a major cost driver.