Which of the Following Is Most Clearly Consistent with the Basic

question 133

Multiple Choice

Which of the following is most clearly consistent with the basic postulate of economics regarding the reaction of people to a change in incentives.

• A) Farmers produce fewer bushels of wheat in response to an increase in the price of wheat.
• B) People will buy more milk at a price of $2 per gallon than at $1 per gallon.
• C) People will buy less gas if the price of gas increases by $.20 per gallon.
• D) People will consume more beef if the price increases from $1 to $2 per pound.

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Definitions:

Title

The legal right to own, use, or dispose of property; often evidenced by a document.

Insurable Interest

(1) In contract law, a property interest in goods being sold or leased that is sufficiently substantial to permit a party to insure against damage to the goods. (2) In the context of insurance, an interest in a person’s life or well-being that is sufficiently substantial that insuring against the person’s death or injury does not amount to a mere wagering contract.

Title

The legal right to own, use, or dispose of property or assets.

Seller

refers to an individual or entity that offers goods or services for sale to consumers or other businesses.