Which of the Following Brings Only an Increase in the Quantity

question 217

Multiple Choice

Which of the following brings only an increase in the quantity demanded of a good?

• A) a decrease in income, assuming the good is an inferior good
• B) a rise in the price of a substitute good
• C) a fall in the price of the good itself
• D) an expectation that the good's price will rise in the future
• E) a decrease in income, assuming the good is a normal good

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Definitions:

Production Possibilities Curve

A graphical representation showing the maximum combination of goods and services that can be produced from a fixed set of resources in a given period.

Opportunity Cost

Represents the value of the next best alternative forgone when a decision is made to choose one option over others.

Factors Of Production

Factors of production are the inputs needed for the creation of a good or service, including land, labor, capital, and entrepreneurship.

Unemployment Of Resources

Unemployment Of Resources refers to a situation where factors of production, such as labor and capital, are not being used in the production process.