When the Relative Price of a Good Increases,consumers Respond by Buying

question 152

Multiple Choice

When the relative price of a good increases,consumers respond by buying

• A)a larger quantity of that good and a larger quantity of substitutes for that good.
• B)a larger quantity of that good and a smaller quantity of substitutes for that good.
• C)a smaller quantity of that good and a larger quantity of substitutes for that good.
• D)a smaller quantity of that good and a smaller quantity of substitutes for that good.

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Definitions:

Period of Time

A specific duration or interval at which certain events or observations are measured or occur.

Supply Curves

Graphical representations showing the relationship between the price of a good and the quantity of that good that producers are willing to supply.

Price

The financial contribution expected, compelled, or made in payment for something.

Tariff

A tax imposed by a government on goods and services imported from other countries, used to control trade volumes.