Consumption Means the Use of Goods and Services to Satisfy

question 32

True/False

Consumption means the use of goods and services to satisfy individual and collective wants and needs.

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Definitions:

Law of Demand

The Law of Demand states that, all else being equal, as the price of a good increases, the demand for that good decreases, and conversely, as the price decreases, demand for the good increases.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product, service, or commodity, usually intended to protect consumers from excessive costs.

Economic Effects

The consequences of a particular policy or economic event on the welfare of the economy.

Price Floor

A government-imposed minimum price for a product or service, intended to prevent prices from falling below a certain level.