When the Price of a Good Falls, Consumers Buy More

question 204

Multiple Choice

When the price of a good falls, consumers buy more of the good because it is cheaper relative to competing goods. This statement describes the

• A) consumer equilibrium effect.
• B) price effect.
• C) income effect.
• D) substitution effect.

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Definitions:

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A Japanese philosophy emphasizing continuous improvement in all aspects of life, especially in the workplace.

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An acronym for "Pretty Darn Quick," often used informally to describe something happening in a fast or efficient manner.

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