When the Price of a Good Increases, All Else Equal

question 325

Multiple Choice

When the price of a good increases, all else equal, the higher price

• A)reduces the consumer's set of buying opportunities.
• B)leads to a parallel shift of the budget constraint.
• C)will necessarily lead to an increase in the consumption of goods whose price did not change.
• D)generally discourages the consumption of inferior goods.

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