Consumers Buy Less of a Good as Its Price Increases

question 328

Multiple Choice

Consumers buy less of a good as its price increases because

• A) production costs have risen.
• B) substitute goods are now relatively cheaper.
• C) the income of consumers has effectively risen.
• D) the higher price will make the good more valuable to each consumer.

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Definitions:

WISC-IV

The fourth edition of the Wechsler Intelligence Scale for Children, a widely used test to assess cognitive ability in children.

Cognitive Functioning

The mental capacity for processing information, acquiring knowledge, and understanding through thought and experience.

Giftedness

Exceptional natural ability or talent in one or more domains of human capability.

Spearman's Two-Factor

A theory proposing that intelligence consists of a general factor (g-factor) that influences overall cognitive ability and specific skills (s-factors) that relate to particular tasks.