When the Price of a Good Decreases, Ceteris Paribus, the Lower

question 89

Multiple Choice

When the price of a good decreases, ceteris paribus, the lower price:

• A)generally encourages the consumption of inferior goods
• B)leads to a parallel shift of the linear budget constraint
• C)will necessarily lead to a decrease in the consumption of goods whose price did not change
• D)expands the consumer's set of buying opportunities

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Definitions:

Contributory Negligence

A defense to negligence whereby the defendant can escape all liability by proving that the plaintiff failed to act in a way that would have protected him or her from an unreasonable risk of harm and that the plaintiff’s negligent behavior contributed in some way to the plaintiff’s accident.

Defendants Liability

The legal obligation of a defendant in a lawsuit to compensate for harm caused to the plaintiff as determined by a court judgment or settlement.

Punitive Damages

Financial compensation awarded to a plaintiff that goes beyond what is necessary to compensate for losses and is intended to punish the defendant.

Gross Negligence

A severe lack of care that shows a reckless disregard for the safety or lives of others, which is considered more serious than simple negligence.