When the Relative Price of a Good Increases,consumers Will Respond

question 32

Multiple Choice

When the relative price of a good increases,consumers will respond by buying

• A)a larger quantity of that good and a larger quantity of substitutes for that good.
• B)a larger quantity of that good and a smaller quantity of substitutes for that good.
• C)a smaller quantity of that good and a larger quantity of substitutes for that good.
• D)a smaller quantity of that good and a smaller quantity of substitutes for that good.

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Definitions:

Ethical Grounds

The foundational moral principles or rationale that justify an action or decision.

Public Policy

Principles and actions selected by government entities aimed at addressing public issues and affecting the public domain.

Ideological

Pertaining to or based on a system of ideas, especially concerning economic or political theory and policy.

Neoliberalism

A political and economic philosophy that advocates for free-market capitalism, deregulation, and a reduction in government spending on social services.