An Increase in the Price of a Good Causes

question 114

Multiple Choice

An increase in the price of a good causes

• A) a change in the slope of the budget line.
• B) an increase in the consumption of that good.
• C) a rightward shift of the demand curve for that good.
• D) a parallel rightward shift of the budget line.

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Definitions:

Availability Heuristic

A cognitive heuristic that depends on readily accessible examples in an individual’s mind when assessing a particular topic, idea, strategy, or choice.

Improbable Dangers

Perceived threats or risks that have a very low likelihood of occurring.

Vivid Memories

Exceptionally clear, detailed, and lifelike memories, often of significant or emotional events.

Universal Grammar

Universal Grammar is a theory in linguistics that suggests there is an innate structure of linguistic knowledge in the human mind which underlies all human language acquisition.