If We Observe an Increase in the Price of a Good

question 279

Multiple Choice

If we observe an increase in the price of a good and a decrease in the amount of the good bought and sold, this could be explained by

• A) an increase in the supply of the good.
• B) an increase in the demand for the good.
• C) a decrease in the demand for the good.
• D) a decrease in the supply of the good.

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Definitions:

Communicator

A person or device that conveys information or facilitates communication between parties.

Similarity

The state of being alike or sharing common features.

Credibility

The quality of being trusted and believed in, often assessed in sources of information or individuals presenting arguments.

Trustworthiness

The quality of being reliable, dependable, and worthy of trust based on honesty, integrity, and reliability.