If the Price of Ice Cream Increases and the Quantity

question 46

Multiple Choice

If the price of ice cream increases and the quantity demanded decreases, how would economists describe this?

• A) a change in quantity demanded
• B) a change in demand
• C) a change in consumer income
• D) a change in one of the variables that shifts demand

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Definitions:

Disposable Income

Available financial assets to households for investments and outlays after income taxes have been applied.

Government Spending

Expenditures by government bodies on goods and services, including salaries, infrastructure, and welfare programs.

Tax

A compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Government Expenditure

Government Expenditure includes all government consumption, investment, and transfer payments, such as spending on infrastructure, welfare programs, and public services.