If Price of a Good Rises, What Happens to the Demand

question 134

Multiple Choice

If price of a good rises, what happens to the demand for that good, all other things held constant?

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

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Definitions:

Self-Esteem

A person's overall subjective emotional evaluation of their own worth or value.

Cognitive Dissonance

The psychological discomfort experienced when holding two or more contradictory beliefs, values, or attitudes, leading to motivation for change to reduce the dissonance.

Boring Task

A monotonous or uninteresting activity that requires completion.

Festinger

Refers to Leon Festinger, a psychologist known for the theory of cognitive dissonance, which explores the discomfort felt when holding conflicting beliefs, values, or attitudes.