If the Price of an Item Falls,then One Would Expect

question 86

Multiple Choice

If the price of an item falls,then one would expect to see a(n)

• A) increase in demand.
• B) increase in the quantity demanded.
• C) decrease in supply.
• D) increase in the quantity supplied.
• E) decrease in the number of consumers.

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Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good changes in response to a change in its price.

Inelastic Supply

A situation in which the supply of a good or service is not significantly affected by changes in price, characterized by a relatively steep supply curve.

Underage Drinking

The consumption of alcoholic beverages by individuals below the legal drinking age in their respective jurisdictions.

Tax

A compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.