One Reason That the Quantity Demanded of a Good Increases

question 133

Multiple Choice

One reason that the quantity demanded of a good increases when its price falls is that the

• A) price decline shifts the supply curve to the left.
• B) lower price shifts the demand curve to the left.
• C) lower price shifts the demand curve to the right.
• D) lower price increases the real incomes of buyers, enabling them to buy more.

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Definitions:

Max Weber

A German sociologist, philosopher, and political economist known for his theory on the protestant ethic and the spirit of capitalism, as well as his ideas on bureaucracy.

Bureaucratic Organization

An organizational model characterized by a hierarchical structure, formal rules, and a clear division of labor designed to achieve efficiency.

Traditional Organization

An organizational form that relies on established customs and norms to structure management and operational activities, often resistant to change.

Laissez-Faire

An economic philosophy advocating minimal governmental intervention in the operation of markets and businesses.