What Happens When the Price of a Good or Service

question 120

Multiple Choice

What happens when the price of a good or service changes?

• A) Supply shifts in the opposite direction.
• B) Demand shifts in the opposite direction.
• C) Demand shifts in the same direction.
• D) There is a movement along a stable demand curve.

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Definitions:

Violating

The act of breaking rules or norms, or failing to comply with legal or moral standards.

Shadow Price

A monetary value assigned to currently unused resources, indicating the potential benefit if the resource were fully utilized.

Sensitivity Analysis

A method used to determine how different values of an independent variable affect a particular dependent variable under a given set of assumptions.

Resource Constraint

A limitation on the availability of resources, which can affect the completion of projects or tasks.