When Economists Say the Demand for a Product Has Decreased

question 337

Multiple Choice

When economists say the demand for a product has decreased, they mean

• A) the demand curve has shifted to the left.
• B) the product price has increased, and as a consequence, consumers are buying less of the product.
• C) consumers are now willing and able to buy more of this product at each possible price.
• D) the demand curve has shifted to the right.

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Definitions:

User Cost

The cost of using a durable good or asset, which includes depreciation, interest lost on funds used to buy the asset, and maintenance costs.

Nonrenewable Resources

Natural resources that cannot be replenished within a human lifetime, such as fossil fuels or minerals.

Opportunity Cost

The value of the next best alternative foregone as the result of making a decision, representing the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Extracting

The process of obtaining raw materials from the natural environment for use in the production of goods or services.