Consumers Buy Less of a Good as Its Price Increases

question 328

Multiple Choice

Consumers buy less of a good as its price increases because

• A) production costs have risen.
• B) substitute goods are now relatively cheaper.
• C) the income of consumers has effectively risen.
• D) the higher price will make the good more valuable to each consumer.

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Definitions:

Tinbergen

Refers to Nikolaas Tinbergen, a pioneering ethologist known for his contributions to the study of animal behavior, including the concept of the four levels of analysis.

Herring Gull Chicks

Young offspring of the herring gull, a large species of seagull that is often found in the northern hemisphere near coastal areas.

Pecking Response

Innate behavior observed in birds where they peck at objects, often triggered by specific stimuli and linked to feeding or investigative actions.

Fixed Action Pattern

Innate, pre-programmed responses triggered by specific stimuli in animals.