When the Price of a Good Increases, Ceteris Paribus, Consumers

question 121

Multiple Choice

When the price of a good increases, ceteris paribus, consumers perceive:

• A)an increase in wellbeing if the price increase occurs for an inferior good
• B)an increase in income if the price increase occurs for a normal good
• C)a loss in wellbeing since they can no longer purchase the same bundle that they had previously
• D)a net gain in income if they increase consumption of some goods

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Definitions:

Squid

A type of cephalopod characterized by a long body, large eyes, eight arms, and two tentacles.

Concentration Gradient

The gradual difference in the concentration of solutes in a solution between two regions.

Hair Receptors

Sensory nerve endings around hair follicles that allow the detection of light touch or fine movements over the skin.