According to a Typical Demand Curve, the Higher the Price

question 104

Multiple Choice

According to a typical demand curve, the higher the price,

• A)the greater the income effect.
• B)the lower the quantity consumers will buy.
• C)the lower the output of producers.
• D)the greater the production costs.
• E)the lower the cross-price elasticity.

---

Definitions:

Income Taxes

Taxes levied by a government on individuals or entities based on their income or profits within a given tax period.

Payroll Taxes

Taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.

Demand And Supply Diagram

A graphical representation used to show the relationship between the demand for a product and its supply, illustrating equilibrium price and quantity.

Efficiency Loss

Refers to the decrease in economic efficiency that can occur when equilibrium for a good or a service is not achieved, often due to market failure or intervention.