If a Third Party Pays a Larger and Larger Share

question 20

Multiple Choice

If a third party pays a larger and larger share of the purchasing price of a good, economic theory indicates that

• A) the total expenditures (including those made by the third party) on the good will decline.
• B) the demand for the good will decrease.
• C) consumers will have a stronger incentive to economize on their use of the good.
• D) suppliers will have less incentive to provide the good at low prices.

---

Definitions:

Exhausted

A state of extreme physical or mental fatigue, often resulting from prolonged stress, activity, or lack of sleep.

General Adaptation Theory

A theory by Hans Selye that describes the body's short-term and long-term reactions to stress, including stages of alarm, resistance, and exhaustion.

Test Anxiety

Excessive stress and fear about taking examinations, which can impair performance.

Mental Alert

The state of being fully aware, awake, and attentive.