If Consumers Are Willing and Able to Pay a Higher

question 144

Multiple Choice

If consumers are willing and able to pay a higher price to obtain any particular quantity, then

• A) demand has increased.
• B) supply has increased.
• C) demand has decreased.
• D) supply has decreased.
• E) both demand and supply have decreased.

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Definitions:

Economic Wants

are desires for goods and services that can be met by consuming products.

Economic Means

The methods or resources available for achieving economic objectives, such as wealth accumulation or resource allocation.

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used to analyze the effect of one variable on another by holding all other relevant factors constant.

Other Things Equal

A Latin term (ceteris paribus) used in economics to signify examining the effect of one changing factor when all other factors remain constant.