One of the Reasons Why Higher Prices Affect the Quantity

question 36

Multiple Choice

One of the reasons why higher prices affect the quantity of real output demanded is

• A) at higher prices, business people become richer, so demand rises
• B) at higher prices, real household wealth is reduced, so the quantity of output demanded falls
• C) when prices are high, consumers fear that a recession is approaching
• D) when pricing are rising, the central bank tends to reduce interest rates, thereby reducing demand
• E) at higher prices, time becomes more valuable, so people buy now instead of later

---

Definitions:

Display Rules

Socially learned norms and regulations specifying which emotions individuals can show in particular situations.

Emotional Expression

The way individuals convey their emotions through facial expressions, gestures, and vocalizations.

Ekman

Refers to Paul Ekman, a psychologist renowned for his work on the classification of human emotions and their relation to facial expressions.

Cannon-Bard Theory

A theory in psychology that suggests emotions and bodily reactions occur simultaneously, rather than one causing the other.