An Increase in the Price of a Product Will Reduce

question 304

Multiple Choice

An increase in the price of a product will reduce the amount of it purchased because

• A) the higher price will signal to consumers that the good is of low quality.
• B) the higher price means that real incomes have risen.
• C) consumers will substitute other products for the one whose price has risen.
• D) consumers substitute relatively high-priced for relatively low-priced products.

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Definitions:

Clean Air Act

A comprehensive federal law in the United States aimed at controlling air pollution and improving the nation's air quality.

Emissions

The release of pollutants into the air or environment by an entity.

California

California is a state located on the West Coast of the United States, known for its diverse geography and as a hub of entertainment, technology, and agriculture.

Air Pollution Standards

Regulations established by government agencies aimed at controlling the emission of pollutants into the air to protect public health and the environment.