An Increase in the Price of a Product Will Reduce

question 168

Multiple Choice

An increase in the price of a product will reduce the amount of it purchased because:

• A) supply curves are upsloping.
• B) the higher price means that real incomes have risen.
• C) consumers will substitute other products for the one whose price has risen.
• D) consumers substitute relatively high-priced for relatively low-priced products.

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Definitions:

Standardization

The process of implementing and developing technical standards to ensure consistency, safety, and efficiency across products, services, and procedures.

Coordination

The organization of the different elements of a complex body or activity so as to enable them to work together effectively.

Machine Bureaucracy

A highly structured organizational form that operates through standardized procedures and a clear hierarchy of authority.

Centralization

Centralization refers to the concentration of decision-making authority and control at the top levels of an organizational hierarchy.