If the Price of a Good Increases, All Else Equal

question 441

Multiple Choice

If the price of a good increases, all else equal, consumers perceive

• A)an increase in purchasing power if the good is an inferior good.
• B)an increase in income if the price increase occurs for a normal good.
• C)a decrease in purchasing power.
• D)a net gain in purchasing power if they decrease consumption of some goods.

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Definitions:

Central Nervous System

The complex of nerve tissues that controls the activities of the body. In vertebrates it comprises the brain and spinal cord.

Sympathetic Nervous System

Part of the autonomic nervous system that regulates involuntary responses by stimulating activities associated with the fight-or-flight response.

Endocrine System

A network of glands that produce and release hormones to regulate various body functions including metabolism, growth, and mood.

Glands

Organs in the body that secrete hormones or other substances directly into the blood or onto a surface within or outside the body.