When the Price of a Good Increases, All Else Equal

question 325

Multiple Choice

When the price of a good increases, all else equal, the higher price

• A)reduces the consumer's set of buying opportunities.
• B)leads to a parallel shift of the budget constraint.
• C)will necessarily lead to an increase in the consumption of goods whose price did not change.
• D)generally discourages the consumption of inferior goods.

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Definitions:

Varic/o

Related to or denoting varicose veins, typically used as a prefix in medical terminology.

Spermat/o

A combining form used in medical terms to refer to sperm or seed, indicating its relation to spermatozoa or the male reproductive cells.

Hydro

Pertaining to water; often used as a prefix in scientific and medical terms to indicate a relationship to water.

Ejaculat/o

A term referring to the expulsion of semen from the male reproductive tract.