The Price of a Good Will Fall When

question 127

Multiple Choice

The price of a good will fall when:

• A) there is a shortage of the good.
• B) there is a surplus of the good.
• C) demand for the good increases.
• D) the supply of the good decreases.

Grasp the concept of higher indifference curves representing higher levels of total utility.

Understand the concept of utility maximization in consumer behavior.

Recognize the role of indifference curves and budget constraints in determining consumer choices.

Identify how the change in price of a good influences demand.

---

Definitions:

FOB

An incoterm standing for "Free On Board," indicating that the seller bears delivery costs and risk until the goods are loaded on a vessel at the specified shipment point.

Origin Contract

A term referring to the initial agreement between parties, detailing the basis of their contractual relationship.

Title Pass

The transfer of ownership of a property or an asset from one party to another, usually occurring upon the fulfillment of agreed conditions.

Time and Place

Contextual factors referring to when and where an event occurs, which can significantly affect the nature or interpretation of the event.