If the Prices of All Goods Increase by the Same

question 15

Multiple Choice

If the prices of all goods increase by the same proportion as income,the quantity demanded of good x will:

• A)decrease.
• B)increase.
• C)remain unchanged.
• D)change in a way that cannot be determined from the information given.

---

Definitions:

International Firms

are businesses that operate in multiple countries around the world, beyond their original domestic market.

Transnational Firms

Companies that operate across national borders, managing production or delivering services in more than one country.

Companies

Organizations engaged in commercial, industrial, or professional activities.

European Union

A political and economic union of 27 European countries that are committed to regional integration, characterized by its single market allowing for the free movement of goods, services, people, and capital.