If Price of a Good Rises, What Happens to Quantity

question 150

Multiple Choice

If price of a good rises, what happens to quantity demanded for that good?

• A)It increases.
• B)It decreases.
• C)It does not change.
• D)The answer depends upon the supply of the good.

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Definitions:

Taxable Income

The portion of an individual's or corporation's income that is subject to taxes by the government.

Taxes

Compulsory charges imposed on individuals or entities by governments used to fund public services and government obligations.

Federal Government Spending

Expenditures by the federal government on goods, services, and public projects, part of the country's fiscal policy.

Average Tax Rate

The proportion of the total taxable income paid in taxes, calculated by dividing the total tax amount by the total income.