There Are Two Goods in the Economy, Apples and Bread

question 123

Multiple Choice

There are two goods in the economy, apples and bread. The relative price of apples has increased. This could be due to

• A)an increase in the absolute price of apples, ceteris paribus .
• B)a simultaneous decrease in the absolute price of apples and an increase in the absolute price of bread, ceteris paribus .
• C)a decrease in the absolute price of apples, ceteris paribus .
• D)an increase in the absolute price of bread, ceteris paribus .

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Definitions:

Cognition

Acquiring information and insight through the process of thinking, experiencing, and the use of the senses.

Sensation

The process by which our sensory receptors and nervous system receive and represent stimulus energies from our environment.

Average Threshold

The point at which a stimulus is of sufficient intensity to begin to produce an effect or to elicit a response.

Human Vision

The ability of the human eye to detect and interpret surroundings by processing information contained in visible light.