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.

Understand the basic structure and function of neurons.

Learn the process and significance of action potentials and neural transmission.

Recognize the different stages and components involved in neurotransmission.

Identify the roles and effects of various neurotransmitters in the brain.

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Definitions:

Limited Liability Company

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Discretionary Income

The amount of an individual's income left for spending, investing, or saving after taxes and basic necessities have been paid.

Free Market

An economic system in which prices are determined by unrestricted competition between privately owned businesses.

Life Expectancy

The average period that an individual is expected to live, based on statistical averages of age, gender, and other demographic factors.